Consumers Express Self-Interest When They

question 109

Multiple Choice

Consumers express self-interest when they:

• A)reduce business losses.
• B)collect economic profits.
• C)seek the lowest price for the product.
• D)search for jobs with the highest wage

---

Definitions:

Beta

A scale for calculating the instability, or regular risk, of a security or combined investments relative to the market in its entirety.

Systematic Risk

The risk inherent to the entire market or market segment, not reducible through diversification.

Security Market Line

A line on a chart that displays the relationship between risk and the expected return of the market portfolio. It serves as a graphical representation of the Capital Asset Pricing Model (CAPM).

Beta Coefficient

A framework for quantifying the variability, or orderly risk, of a security or investment compilation when juxtaposed with the general market.