Examlex

Solved

The Figure Above Shows the Circular Flow Model

question 79

Multiple Choice

   The figure above shows the circular flow model. -In the figure above,which of the following transactions take place in the factor markets? i.Michael,a student,orders a computer from Dell online. ii.Peter gets a job at a Wal-Mart store. iii.Apple Computer opens a new store in Georgia. A)  ii and iii B)  Only i C)  Only ii D)  Only iii E)  i and ii
The figure above shows the circular flow model.
-In the figure above,which of the following transactions take place in the factor markets?
i.Michael,a student,orders a computer from Dell online.
ii.Peter gets a job at a Wal-Mart store.
iii.Apple Computer opens a new store in Georgia.


Definitions:

Market Risk Premium

The additional return an investor expects to receive from holding a risky market portfolio instead of risk-free assets.

SML

Stands for Security Market Line, a graphical representation of the expected return of investments at different levels of systematic, or market, risk.

Beta

An indicator of how much a stock's price is expected to fluctuate, compared to fluctuations in the overall stock market.

Required Rate of Return

The minimum annual percentage return an investor expects to earn from an investment to consider it worthwhile.

Related Questions