The Commodity Substitution Bias Is That

question 96

Multiple Choice

The commodity substitution bias is that

• A)consumers substitute high-quality goods for low-quality goods.
• B)government spending is a good substitute for investment expenditures.
• C)national saving and foreign borrowing are interchangeable.
• D)consumers decrease the quantity they buy of goods whose relative prices rise and increase the quantity of goods whose relative price falls.
• E)consumers substitute more expensive goods for less expensive goods when technology advances.

Identify and characterize different species types and their roles in ecosystems.

Recognize factors affecting biodiversity and species populations.

Understand the concept of keystone, indicator, native, and non-native species and their impacts.

Know the relationship between habitat characteristics and species diversity.

---

Definitions:

CML

The Capital Market Line, representing the risk-return trade-off of efficient portfolios in the capital market theory; it shows the highest return possible for any given level of risk.

Well-Diversified Portfolios

Investment portfolios that contain a wide variety of assets to minimize exposure to any single asset or risk.

Relative Systematic Risk

The risk inherent to the entire market or market segment, which can be compared relative to other stocks or securities within the same market.

Beta

A measure of a stock's volatility in comparison to the overall market; a beta greater than 1 indicates higher than market volatility.