Hedging Is Action Taken to Reduce Risk or Insure Against

question 35

True/False

Hedging is action taken to reduce risk or insure against a possible negative outcome.

---

Definitions:

Environmental Standards

Regulations and criteria set by authorities regarding the levels of pollutants that can be present in the environment or released over a certain time frame.

Positive External Benefits

Benefits experienced by third parties or the society at large due to an economic activity, which are not reflected in the market price of goods or services.

Government Intervention

The involvement of the government in the market to correct market failures and promote economic stability and growth.

Flu Vaccines

Vaccines that protect against influenza, a contagious respiratory illness caused by influenza viruses.