Suppose there's an 80% chance of a stock rising by 20% and a 20% chance of it falling by 40%. Which type of investor would prefer an investment with a guaranteed return of 5%?

Which of the following is a recent trend in the labor market?

A) Low-skilled workers have lost jobs. B) The demand for high-skilled labor has increased as technology has increased. C) The wages of high-skilled labor have decreased. D) The marginal productivity of low-skilled workers has increased.

Diminishing marginal returns lead to diminishing returns

A) when marginal returns fall but remain positive. B) only in theory. C) when marginal returns become negative. D) when labor exceeds capital.