When a Citizens' Group Opposes Expansion of the Prison Located

question 109

Multiple Choice

When a citizens' group opposes expansion of the prison located in town, the basis of the opposition is that the larger prison will produce

• A)a negative externality for the community
• B)a positive externality for the community
• C)more jobs in the community
• D)tax revenue for the community
• E)improved criminal justice options

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Definitions:

Company-specific

Refers to information, events, or characteristics that only affect a single company, not the industry as a whole or the market at large.

Unsystematic Events

Specific, unpredictable events that affect a single company or a small group of companies, not the entire market.

Investment Risk

The potential for loss of value in an investment, often measured by the variability of returns associated with a given asset.

Risk-averse Investor

A risk-averse investor is someone who prefers to minimize financial risk and is likely to choose investments with lower potential returns to avoid losing money.