When a Person's Income Increases

question 38

Multiple Choice

When a person's income increases:

• A) more bundles of goods and services become affordable.
• B) less bundles of goods and services become affordable.
• C) the bundles of goods and services that become affordable don't change.
• D) the bundles of goods and services that become affordable must include more expensive goods and services.

---

Definitions:

Well-Diversified Portfolio

A collection of investments across various asset classes and industries intended to reduce risk through the principle of diversification.

Historical Relationship

A reference to the way entities or variables have interacted or correlated with one another in the past.

Beta

A measure of a stock's volatility in relation to the overall market, indicating its riskiness.

Unsystematic Risk

is the type of risk that is specific to a particular company or industry, and can be mitigated through diversification.