Which of the Following Is True of Resources

question 61

Multiple Choice

Which of the following is true of resources?

• A) Resources are inputs used to produce goods and services.
• B) Labor is the mental and physical capacity of workers to produce goods and services.
• C) Entrepreneurship organizes resources to produce goods and services.
• D) All of these are true.

---

Definitions:

Risk Premium

The risk premium is the extra return above the risk-free rate that investors demand as compensation for the risk of investing in a particular asset.

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio of assets in comparison to the market as a whole.

Unsystematic Risk

Risk associated with a specific company or industry, which can be mitigated through diversification.

Market Risk

The possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets.