Identify the True Statements About Economic Wellbeing from the Following

question 153

Multiple Choice

Identify the true statements about economic wellbeing from the following list.Economic wellbeing is:
(i) the sum of consumer surplus and producer surplus
(ii) marginal revenue to the producer minus the average cost to the consumer
(iii) total profit of producers

• A)(i) and (ii)
• B)(ii) and (iii)
• C)(i) and (iii)
• D)(i) only

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Definitions:

Market Risk Premium

The supplementary income expected by an investor from maintaining a risky market portfolio rather than holding risk-free investments.

Required Return

The minimum return that an investor expects to achieve on an investment, considering the risk associated with it.

Risk-free Rate

The theoretical return of an investment with zero risk, often represented by the yield on government securities.

Beta

Beta is a measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher volatility, while a beta less than 1 indicates lower volatility.