A Firm Becomes More Labor-Intensive When It

question 66

Multiple Choice

A firm becomes more labor-intensive when it:

• A) reduces the ratio of output to capital.
• B) increases the ratio of output to labor.
• C) reduces the ratio of capital to labor.
• D) increases the ratio of capital to labor.

Understand the relationship between risk and return and the concept of a risk premium.

Comprehend the calculation and interpretation of the geometric and arithmetic average returns.

Identify the factors influencing investment volatility and the concept of standard deviation in this context.

Understand the implications of historical returns data on future investment decisions.

---

Definitions:

Infestation

The presence of an unusually large number of insects or animals in a place, typically causing damage or disease.

Specimen

A sample or part taken from a whole to be tested or studied, often used in medical and scientific contexts.

Slide

A small piece of glass used to hold specimens for examination under a microscope; or a playground equipment that children can slide down.

Nucleic Acid

A complex organic substance present in living cells, especially DNA or RNA, whose molecules consist of many nucleotides linked in a long chain.