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NEW QUESTION: 1
Section A (1 Mark)
The core of the_________________ is that even though stocks appear to be an attractive asset - they have high average returns and a low covariance with consumption growth - investors appear very unwilling to hold them.
A. Inter Temporal Consumption
B. Equity premium puzzle
C. Sunk Cost Fallacy
D. Present-biased preferences
Answer: B

NEW QUESTION: 2
What is the expected behavior of the following code?

A. it outputs True
B. it outputs False
C. it raises an exception
D. it outputs nothing
Answer: A

NEW QUESTION: 3
The passage of time usually
A. causes the price elasticity of demand for a good to decrease.
B. has a completely unpredictable effect on the price elasticity of demand for a good.
C. causes the price elasticity of demand for a good to increase.
Answer: C
Explanation:
Price elasticity of demand usually increases with time because it often takes time to make the adjustments needed to change spending plans. Consider the time it takes to make all the adjustments you would want to make if the price of gasoline tripled!