Investors Will Always Prefer the Purchase of Risk-Free Treasury Securities

question 42

True/False

Investors will always prefer the purchase of risk-free Treasury securities, since other securities have a higher level of risk.

---

Definitions:

Lowest Cost

The minimal expense incurred in the production or procurement of goods or services, under efficient conditions.

Output

The quantity of goods or services produced within a given time period.

Factor Prices

The costs of the inputs that are used in the production of goods or services.

Production Function

A mathematical relationship describing the maximum output possible from a given set of inputs.