Generally,the lower the risk,the higher the return that can be expected.

State security statutes are commonly called ________ laws.

A) exchange
B) third party
C) common
D) blue sky

The problem with common resources is similar to the problem with negative externalities because:

A) both issues deal with natural resources.
B) the marginal social benefit of producing another unit exceeds the individual's marginal benefit.
C) the marginal social cost of producing another unit exceeds the individual's marginal cost.
D) the individual's marginal cost of producing another unit exceeds the individual's marginal benefit.

A central issue of economics is how to fulfill an unlimited demand for goods and services in a world with limited resources.

In a perfectly matched hedge of fixed-rate debt using an interest rate swap, the effect of a change in fair value of the derivative on the income statement

A) is always a gain
B) may be a gain or a loss
C) is zero
D) is always a loss