The Federal Government Is Concerned About Obesity in the United

question 9

Multiple Choice

The federal government is concerned about obesity in the United States.Congress is considering two plans.One will ban the production and sale of "junk food." The other will increase nutrition-education programs and include substantial advertising campaigns to encourage healthy eating habits.The junk-food ban program

• A)and the education program will reduce the quantity of junk food sold and raise the price.
• B)and the education program will reduce the quantity of junk food sold and lower the price.
• C)will reduce the quantity of junk food sold and raise the price.The education program will reduce the quantity of junk food sold and lower the price.
• D)will reduce the quantity of junk food sold and lower the price.The education program will reduce the quantity of junk food sold and raise the price.

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Definitions:

Pure Play

A company that focuses exclusively on a single product or service area.

Risk Characteristics

The inherent features of an investment that determine its potential return and the likelihood of loss.

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, typically associated with government bonds.

Market Risk Premium

The extra return that investors require to hold a risky market portfolio instead of risk-free assets.