Which One of the Following Statements Is a Correct Reflection

question 78

Multiple Choice

Which one of the following statements is a correct reflection of the U.S.markets for the period 1926-2010?

• A)U.S. Treasury bill returns never exceeded a 9 percent return in any one year during the period.
• B)U.S. Treasury bills provided a positive rate of return each and every year during the period.
• C)Inflation equaled or exceeded the return on U.S. Treasury bills every year during the period.
• D)Long-term government bonds outperformed U.S. Treasury bills every year during the period.
• E)National deflation occurred at least once every decade during the period.

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Definitions:

Long-run Cost Curve

A graphical representation showing the minimum cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

Hair Dryers

Electrical devices used to blow dry hair by emitting warm air.

Economies of Scope

Cost advantages that arise from a firm or company expanding its product line or markets, exploiting shared resources or technologies.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the cost per unit as output increases.