Which of the following assets is almost riskless?
A) Common stocks
B) Long-term corporate bonds
C) U.S. Treasury bills
D) Long-term government bonds
E) Apartment buildings
Question 2
Consider two goods X and Y available for consumption. Assume that the price of X changes while the price of Y remains fixed. For these two goods, the price-consumption curve illustrates the
A) relationship between the price of X and consumption of Y.
B) utility-maximizing combinations of X and Y for each price of X.
C) relationship between the price of Y and the consumption of X.
D) utility-maximizing combinations of X and Y for each quantity of X.
Beware of “Common Sense” Explanations
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