The Idea That Social Welfare Is Not an Institution but an Emergency

question 19

Multiple Choice

The idea that social welfare is not an institution but an emergency back-up system is called the:

• A)institutional conception.
• B)reactionary conception.
• C)liberal conception.
• D)residual conception.

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Definitions:

Security Market Line

A representation in finance that shows the relationship between risk (as measured by beta) and expected return of investments, used in the capital asset pricing model.

Capital Market Line

A line used in the capital asset pricing model to depict the rates of return for efficient portfolios depending on the risk-free rate of return and the level of risk (standard deviation) for a particular portfolio.

Characteristic Line

In finance, a line that describes the relationship between the return on an investment and the return on the market as a whole, used in the Capital Asset Pricing Model.

Systematic Risk

Systemic risk associated with the overall market or a particular segment of the market, widely known as market risk, remains even after diversification efforts.