A tax and a regulation that have the same effect on output in the ...

[geodog55]

A tax and a regulation that have the same effect on output in the short run will have different effects in the long run. _____ creates profits which encourages _____, while _____ creates losses and encourages _____.
 
  a. Corrective taxation; entry; regulation; exit
  b. Regulation; entry; corrective taxation; exit
  c. Corrective taxation; exit; regulation; entry
   d. Regulation; exit; corrective taxation; entry

Question 2

For a given expected value, the smaller the standard deviation of the expected value, the larger the risk.
 
  Indicate whether the statement is true or false

[fromAlphatoOmega22]

Answer to Question 1

b

Answer to Question 2

False. The smaller the standard deviation the smaller the associated risk. The standard deviation is the square root of the variance, thus the smaller the variance the smaller the standard deviation. The smaller the variance of the expected value the smaller the risk.

[geodog55]

Thank you

[fromAlphatoOmega22]

Happy to help you