Some Pet Owners Are Using an "Invisible Fence" to Keep

question 1

Multiple Choice

Some pet owners are using an "invisible fence" to keep their animals from straying. Every time the animal steps over the edge of the property, it gets a mild shock. A social scientist would call the shock

• A)a bribe.
• B)a reward.
• C)a disincentive.
• D)a normative incentive.

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Definitions:

Upward Sloping Yield Curve

A graph showing higher interest rates for longer-term debt compared to shorter-term debt, indicating investor anticipations of rising interest rates in the future.

Normal Curve

The normal curve, or normal distribution, is a bell-shaped curve that shows the probability distribution of a continuous random variable, where most occurrences take place near the mean.

Marginal Investor

An investor whose actions might influence the market price of a security and who is typically sensitive to changes in risk levels or return.

Required Rate

The minimum return an investor expects to achieve by investing in a particular asset, also known as the required rate of return.