Which One of the Following Types of Risk Cannot Be

question 29

Multiple Choice

Which one of the following types of risk cannot be effectively eliminated through portfolio diversification?

• A) inflation risk
• B) labor problems
• C) materials shortages
• D) product recalls

---

Definitions:

Import Goods

These are products brought into one country from another for sale.

Scarce Factors

Resources that are limited in availability and are constraint to economic production.

Capital

Refers to financial assets or physical resources that are used in producing goods or providing services.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than others.