Which Type of Risk Involves Risk with the Potential for Both

question 22

Multiple Choice

Which type of risk involves risk with the potential for both benefits and losses?

• A)pure risk
• B)dynamic risk
• C)realistic risk
• D)acceptable risk

---

Definitions:

Market Efficiency

Market efficiency refers to the extent to which market prices fully reflect all available information, leading to an optimal allocation of resources.

Ideal Market

A theoretical or perfect market condition where there are many buyers and sellers, no barriers to entry, and complete access to information.

Rent-Seeking

Actions by individuals and groups designed to restructure public policy in a manner that will either directly or indirectly redistribute more income to themselves or the projects they promote.

Monopoly Power

The ability of a single seller or company to control the market price and supply of a product or service.