Shareholders with diversified portfolios will encourage
a. social decision-makers to be risk-neutral.
b. corporate decision-makers to be risk-neutral.
c. corporate decision-makers to be risk-preferring.
d. individual entrepreneurs to be risk preferring.
b. corporate decision-makers to be risk-neutral.
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Governments can increase the consumption of a product that creates positive externalities by
A) taxing the production and consumption of the product. B) subsidizing the production of the product so that the supply is increased and market price is reduced. C) convincing everyone to consume the product. D) assigning property rights to the producers of the product.
The massive shift of population and industry out the large central cities from the late 1940s through the 1960s was caused by
A. terrorist attacks. B. the mechanization of agriculture. C. suburbanization. D. the widespread use of electricity. E. fear of nuclear war.