Households

question 69

Multiple Choice

Households:

• A)own and sell resources.
• B)play a very minor role in the economy.
• C)supply goods and services.
• D)are the largest purchasers of resources.
• E)set the price for goods.

Understand the mechanisms involved in approach-avoidance motivational conflicts.

Recognize the universal and culturally specific aspects of emotional appraisals.

Explain the communicative functions of emotions.

Evaluate the challenges and errors associated with the use of lie detectors.

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Definitions:

Expected Return

The anticipated profit or loss from an investment, taking into account the potential outcomes and their probabilities.

SMB Beta

A measure used in the evaluation of stocks, indicating a stock's sensitivity to movements in the small minus big (SMB) factor, part of the Fama-French three-factor model.

HML Beta

A measure of sensitivity to the HML (High Minus Low) factor, part of the Fama-French three-factor model, indicating how much a stock's return is affected by the value premium.

Risk Premium

The additional return expected on an investment for taking on higher risk compared to a risk-free asset.