In the Absence of Air Resistance, a Boulder and a Pebble

question 23

Multiple Choice

In the absence of air resistance, a boulder and a pebble dropped from rest will fall with equal

• A)forces of gravity.
• B)accelerations.
• C)energies.
• D)all these.
• The reason that this quantity is not greater for the boulder than the pebble is that
• E)both the boulder and the pebble fall at the same speed.
• F)the initial potential energies of each is the same.
• G)gravitational force acting on each is the same.
• H)the greater gravitational force on the boulder acts on a correspondingly greater mass.

Interpret the slope of indifference curves as the rate of substitution between goods.

Comprehend how movement along an indifference curve affects total utility.

Relate the concept of higher indifference curves with greater levels of utility.

Understand the non-crossing property and convexity of indifference curves for ordinary goods.

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Definitions:

Portfolio Diversification

An investment strategy aimed at reducing risk by allocating investments across various financial instruments, industries, or other categories.

Risk Premium

The additional return demanded by investors for taking on the higher risk associated with an investment, compared to a risk-free asset.

Unsystematic Risk

The risk associated with a specific company or industry, also known as diversifiable risk or idiosyncratic risk.

Market Risk

The risk of losses in positions arising from movements in market prices.