In a Preference Map,consumption Combinations on Higher Indifference Curves

question 143

Multiple Choice

In a preference map,consumption combinations on higher indifference curves

• A) always cost more than any combination on a lower indifference curve.
• B) always are preferred to combinations on lower indifference curves.
• C) always cost less than any combination on a lower indifference curve.
• D) always are less preferred than combinations on lower indifference curves.
• E) are sometimes more preferred, sometimes less preferred, and sometimes equally preferred to any combination on a lower indifference curve.

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Definitions:

Factor Beta

Sensitivity of security returns to the realization of a systematic factor. Also called factor loading and factor sensitivity.

Economic Growth

The increase in the amount of goods and services produced by an economy over time, often measured by the annual percentage growth of a country's gross domestic product (GDP).

Equally-Weighted Portfolio

An investment portfolio where each asset is allocated the same proportion of the total investment, disregarding market capitalization.

Portfolio Return

The overall gain or loss of an investment portfolio, considering all sources of income and capital gains.