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Investment Risk Refers to the Likelihood of a Loss

question 132

Multiple Choice

Investment risk refers to the likelihood of a loss. All of the following given below are types of investment risk EXCEPT.

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Definitions:

Opportunity Cost

The expense incurred by not choosing the second-best option when making a decision.

Scarcity

The basic economic issue arises from endless human desires and needs in a context of scarce resources.

Full Production

The level of production where a company or economy is maximizing its use of resources and operating at its highest efficiency.

Full Employment

Refers to the condition in the labor market where virtually all who are willing and able to work at prevailing wage rates are employed.

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