A Man with a High Need for Achievement Is Trying

question 17

Multiple Choice

A man with a high need for Achievement is trying to decide between several investment opportunities. He is likely to select an investment with a

• A) potentially small return but with relatively little risk of losing any money.
• B) potentially moderate return but with a moderate amount of financial risk.
• C) potentially huge return but with a significant possibility of losing a large amount of money.
• D) guaranteed small return rate with absolutely no risk.

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Definitions:

Binding Price Floor

A minimum price set by the government that is above the equilibrium price, causing a surplus of the good.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a balanced market.

Binding Price Floor

A minimum price set by the government that is above the equilibrium price, resulting in a surplus of the product.

Equilibrium Price

The price at which the quantity of a good or service supplied equals the quantity demanded, leading to market stability.