An Economic "Bad" Is a Commodity for Which _____

question 79

Multiple Choice

An economic "bad" is a commodity for which _____.

• A)less is preferred to more after a certain level of consumption has been reached
• B)more is preferred to less regardless of the level of consumption
• C)satisfaction does not change as more is consumed
• D)less is preferred to more over all possible ranges of consumption

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Definitions:

Geometric Average Return

The average rate of return on an investment per year, geometrically linked to account for the compounding effect of returns over time.

Arithmetic Average Return

The simple mean of a series of returns over a specific period, often used to gauge the performance of an investment.

Statistically Significant

Refers to a result that is not likely to occur randomly or by chance, but rather is likely to be attributable to a specific cause.

Portfolio Performance

The analysis and evaluation of the returns generated by a collection of investments held by an individual or an institution.