Each of the Following Would Cause an Increase in the Supply

question 217

Multiple Choice

Each of the following would cause an increase in the supply of baseballs EXCEPT

• A) an improvement in technology.
• B) a decrease in the cost of labor used to produce baseballs.
• C) an expectation that the price of baseballs will rise in the future.
• D) an increase in the number of baseball producers.

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Definitions:

Risk-Free Return

The return on investment that is guaranteed, with no risk of financial loss.

Wildcat Fund

An investment fund that takes higher risks in anticipation of higher rewards, often investing in unproven sectors or speculative ventures.

Information Ratio

A measure of portfolio returns beyond the returns of a benchmark, relative to the volatility of those excess returns.

Risk-Free Return

The theoretical return on an investment with no risk of financial loss, traditionally associated with government bonds or bills.