Restrictions That Limit Sugar Imports, Subsidies for the Construction of Sports

question 92

Multiple Choice

Restrictions that limit sugar imports, subsidies for the construction of sports stadiums, and federal spending on programs like the construction of an indoor rain forest in Iowa all provide examples of government programs

• A) based on careful analysis of benefits relative to cost.
• B) designed to redistribute income from the rich to the poor.
• C) that reflect the political attractiveness of special-interest issues.
• D) that promote the general welfare.

---

Definitions:

Beta Coefficient

A framework for quantifying the variability, or orderly risk, of a security or investment compilation when juxtaposed with the general market.

Risk Premium

The additional return an investor demands for choosing a risky investment over a risk-free option, serving as compensation for the additional risk.

Capital Asset Pricing Model

A framework that explains the link between the inherent risk and anticipated return on assets, especially equities.

Efficient Frontier

A portfolio optimization concept that outlines the set of optimal portfolios offering the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.