Real Assets in Comparison to Financial Assets Are More Likely

question 14

Multiple Choice

Real assets in comparison to financial assets are more likely to produce:

• A)superior returns.
• B)high liquidity.
• C)psychic pleasure.
• D)deflationary benefits.

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Definitions:

Productive

The efficiency at which an individual, company, or economy can convert input resources into useful output.

Diminish Profits

The reduction in the amount of earnings as a result of increased costs, decreased revenue, or both.

Economic Profit

The financial difference created by subtracting total explicit and implicit expenses from total revenue in a company.

Fixed Input

A resource or factor of production whose quantity does not change with the level of output in the short run.