Of the Following, the Investment Time Horizon Is Typically the Shortest

question 19

Multiple Choice

Of the following, the investment time horizon is typically the shortest for ________.

• A) banks
• B) endowment funds
• C) life insurance companies
• D) pension funds

---

Definitions:

Economic Profit

The difference between the total revenue generated by a business and the total costs, including both explicit and implicit costs.

Marginal Product

The additional output that is produced by adding one more unit of a particular input, holding all other inputs constant.

Explicit Costs

Costs that involve direct monetary payment by a firm for the resources needed in production, such as wages and materials.