Volatility Clustering

question 4

Multiple Choice

Volatility clustering

• A)is evident in most cross-sections.
• B)implies that a series is serially correlated.
• C)can mostly be found in studies of the labor market.
• D)is evident in many financial time series.

Analyze how marginal benefits change with consumption.

Interpret economic data from tables to determine cost and production levels.

Apply the concept of marginal analysis to real-world scenarios in production.

Recognize the conditions under which firms should continue to produce additional units.

---

Definitions:

Passive

Characterizes a lack of action or inactivity, often referring to behaviors or attitudes where individuals do not actively engage or assert themselves in situations.

Spontaneous

Occurring naturally, without being planned or premeditated, often resulting from a sudden impulse or inclination.

Nonprogrammed

Nonprogrammed decisions refer to responses made to situations that are unique, poorly defined and unstructured, and for which pre-specified processes are not applicable.

Role Ambiguity

A situation where an employee lacks clear understanding of their job duties, responsibilities, or expectations, leading to confusion and stress.