Which One of the Following Is an Example of Systematic

question 73

Multiple Choice

Which one of the following is an example of systematic risk?

• A) Investors panic causing security prices around the globe to fall precipitously
• B) A flood washes away a firm's warehouse
• C) A city imposes an additional one percent sales tax on all products
• D) A toymaker has to recall its top-selling toy
• E) Corn prices increase due to increased demand for alternative fuels

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Definitions:

Digital Piracy

Digital piracy is the illegal copying, distribution, or use of digital media, such as software, music, movies, and video games, without authorization or payment to the copyright holder.

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Over- Or Underallocate

Refers to the inefficient distribution of resources, either by providing too much (overallocation) or too little (underallocation) relative to the optimal level of allocation.

Internet Piracy

The unauthorized use, reproduction, or distribution of copyrighted material over the internet, including software, movies, music, and e-books.