When Viewing the Long-Term Trend of the Price Volatility of U.S.stocks,it

question 88

Multiple Choice

When viewing the long-term trend of the price volatility of U.S.stocks,it is readily apparent that volatility has:

• A) continually increased.
• B) continually decreased.
• C) increased and decreased but has no specific pattern.
• D) remained constant for years.

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Definitions:

Long-Run Supply Curve

A graphical representation showing the relationship between the price of a good and the total output produced by firms in the market over a long period, assuming input factors are variable.

Upward-Sloping

Refers to a line on a graph that demonstrates an increase in value on the vertical axis as the value on the horizontal axis increases; typically related to supply curves in economics.

Pure Competition

Another term for a purely competitive market, emphasizing the absence of barriers to entry and the presence of numerous sellers and buyers.