Why Would It Be a Difficult for a Third Major

question 34

Multiple Choice

Why would it be a difficult for a third major party to be successful?

• A) The support for a third major party is spread across people of widely varying ideologies.
• B) The support for a third major party is well below 50 percent.
• C) The support for a third major party is concentrated among far-right conservatives.
• D) The support for a third major party is concentrated among far-left communists.
• E) The United States Constitution specifically states that there should be only two major parties.

---

Definitions:

Risk Associated

The potential for loss or uncertainty in investment or business activities due to various factors.

Inflation

A measure of the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Risk Premium

The extra return or compensation investors demand for taking a higher risk compared to a risk-free investment.

Systematic Risk

The risk associated with the overall market or a specific segment of it that cannot be reduced through diversification.