Which of the Following Statements Is False

question 49

Multiple Choice

Which of the following statements is false?

• A) An investor's preferences will determine only how much to invest in the tangent or efficient portfolio versus the risk-free investment.
• B) Conservative investors will invest a small amount in the tangent or efficient portfolio, choosing a portfolio on the line near the risk-free investment.
• C) Only aggressive investors will choose to hold the portfolio of risky assets, the tangent or efficient portfolio.
• D) Aggressive investors will invest more in the tangent portfolio, choosing a portfolio that is near the tangent portfolio or even beyond it by buying stocks on margin.

Recognize how markets can create inequalities through the commodification of goods or services.

Identify the purpose and function of unions in the labor market.

Distinguish between primary and secondary labor markets, including how wages and benefits are established.

Explain the debate between free and regulated markets, and the multifaceted nature of market regulation.

---

Definitions:

Monopsonist

A single buyer dominant in a market, capable of influencing prices due to its purchasing power.

Labor Supply Curve

A graphical representation that shows the relationship between the wage rate and the quantity of labor that workers are willing to supply.

Impose

To enforce or apply a rule, tax, penalty, or restriction.

Settlement

In financial terms, a settlement is the process whereby securities are delivered, usually against in exchange for payment of money, to fulfill contractual obligations, such as those arising from the sale of securities.