Which Is a Positive Economic Statement

question 182

Multiple Choice

Which is a positive economic statement?

• A) Shortages in the kidney trade are a necessary phenomenon.
• B) Animal rights activists are to blame for the high prices of real furs.
• C) We should encourage the importation of kidneys from the less-developed countries.
• D) A government-imposed price of zero for kidneys helps create a black market in kidneys.

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Definitions:

Market Risk

The risk of losses in investments due to factors that affect the entire market or economy.

CAPM (Capital Asset Pricing Model)

A financial model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Market Risk

The risk of losses in investments caused by factors that affect the entire market, such as economic recession or political instability.

Treasury Bonds

Long-term government bonds issued by the Treasury Department with maturity periods typically longer than 10 years.