Which of the Following Is an Example of Portfolio Investment

question 44

Multiple Choice

Which of the following is an example of portfolio investment?

• A)Toyota builds an automobile plant in Ohio.
• B)The Bank of Japan buys dollars.
• C)A citizen of Japan buys stock in Microsoft.
• D)A citizen of Japan buys an option to purchase Microsoft stock in the future.

Analyze the effects of minimum wage laws on the supply and demand for labor.

Understand the impact of natural disasters on market prices and their role in resource allocation.

Comprehend the significance of government intervention in markets through price controls and its effects on supply and demand equilibrium.

Understand how price floors and price ceilings affect market equilibrium and lead to surpluses or shortages.

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Definitions:

Marginal Cost

The financial commitment needed for producing an extra unit of a good or service.

Marginal Revenue

The addition to total revenue resulting from the sale of one more unit of a product or service.

ATC

Average Total Cost; the total cost of production (fixed and variable costs combined) divided by the number of units produced.

Price Charged

The amount of money a buyer has to pay to acquire a product or service from a seller.