Explain Why Lab Rats Are Used to Determine the Risk

question 7

Essay

Explain why lab rats are used to determine the risk of cancer from toxic pollutants.

Recognize the significance of holding a broad portfolio of stocks for long-term investment benefits.

Understand the concept of market equilibrium and how prices adjust to equilibrate supply and demand.

Analyze the effects of external factors on market prices and quantities.

Understand the principles of personal finance and investment strategy.

---

Definitions:

Interest Rates

The percentage of principal charged by the lender for the use of its money, influencing economic activity by encouraging or discouraging borrowing and spending.

Mutual Fund Shares

Investments representing units of ownership in a mutual fund, where the fund pools money from many investors to purchase a diversified portfolio of securities.

Macroeconomist

An economist who studies broad economic factors, including inflation, national income, and unemployment, and how they interact on a large scale.

Budget Deficit

The situation where a government's expenses exceed its revenues over a specified period of time.