Short-Term U

question 167

Multiple Choice

Short-term U.S.government securities are practically risk-free, and thus their rates of return are payments solely for

• A)diversifiable risk.
• B)time preference.
• C)idiosyncratic risk.
• D)pure profit.

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Definitions:

Imperfect Substitutes

Goods or services that can replace each other to some extent, but have differences in features, quality, or price that make them not completely interchangeable.

Brand Names

Names given to products or services by companies to distinguish them from competitors.

Profit-maximizing Price

The price level at which a business can achieve the highest possible profits, given its cost structure and demand for its products.

Demand Curve

A graph that represents the relationship between the price of a good or service and the quantity demanded by consumers.