If the Average Annual Rate of Return for Common Stocks

question 58

Multiple Choice

If the average annual rate of return for common stocks is 11.7%,and 4.0% for U.S.Treasury bills,what is the average market risk premium?

• A)15.7%
• B)4.0%
• C)7.7%
• D)not enough information provided

Recognize the importance of human capital and its investment.

Describe the composition of total income in an economy and the significant share of 'compensation of employees'.

Understand the role and categorization of various inputs and factors in production.

Explain the concept of marginal product and the value of the marginal product of labor.

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Definitions:

Nontariff Barrier

Any restriction, other than tariffs, that restricts international trade, such as quotas, embargoes, or regulatory standards.

Export Subsidy

A government policy that provides financial assistance to domestic firms for exporting goods, aimed at increasing the competitiveness of domestic products in foreign markets.

Box-by-Box Inspection

A detailed checking process where each individual item or package is examined, commonly used in customs or quality control.

Excise Tax

A tax levied on specific goods, services, or transactions, often to discourage consumption of these goods or to raise revenue for government projects.