Question

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QUESTION 27 A risk premium is a the difference between the earnings of a low risk asset and a high risk asset b. premium paid to a security holder to compensate him for bearing a higher risk c. both A&B d. none of the above QUESTION 28 How does an increase in the price of laptop memory chips affect the market of laptops? a. The supply curve for laptops shifts to the left b. The demand curve for laptops shifts to the right c. The supply curve for laptops shifts to the right d. The demand curve for laptops shifts to the left QUESTION 29 If long run average costs are constant with respect to output, you have a. Increasing returns to scale b. Decreasing returns to scale c. Constant returns to scale d. None of the above Click Save and Submit to sme m

Answer 1

27.For an individual, a risk premium is the minimum amount of money by which the expected return on a risky asset must exceed the known return on a risk-free asset in order to induce an individual to hold the risky asset rather than the risk-free asset

Answer-C

28.An increase in price of memory chips increase the final price of laptop.The supply falls due to rise in cost of production.

Answer-A

29.When LRAC is constant,the firm is experiencing constant returns to scale.

Answer-C

30.Specialization and division of labour force is not a factor for diminishing returns.

Answer-B

31.Since EC>0,the goods are complements.

Answer-C

32.When AC is rising MC is above AC.

Answer-B