Which One of the Following Is the Best Example of Systematic

question 70

Multiple Choice

Which one of the following is the best example of systematic risk?

• A)The price of lumber declines sharply
• B)Inflation rises unexpectedly
• C)Airline pilots go on strike
• D)A hurricane hits a tourist destination
• E)People become diet conscious and avoid fast food restaurants

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Definitions:

Marginal Cost

The financial increment incurred by the production of an extra unit of a product or service.

Average Total Cost

It refers to the total cost per unit of output, calculated by dividing the total cost of production by the number of units produced.

Efficient Mix

An allocation of resources that maximizes the total utility to society, where no individual can be made better off without making someone else worse off.

Potentially Efficient

A state in which resources could be utilized in a way that maximizes the net benefits to society or an economy, although not necessarily currently achieved.