Question

Making blackmail, extortion, and other forms of private coercion illegal is one way that government A. reduces private-sector economic risk. B. increases private-sector economic risk. C. reduces the market's economic efficiency. D. increases the economy's deadweight losses.

Answer 1

The correct answer is A. Reduces private-sector economic risk.

Step-by-step explanation:

Economic risk refers to the uncertainty produced in the return on investment due to changes in the economic situation of the sector in which the company operates. Thus, by way of example, this risk may come from: the management policy of the company, the policy of distribution of products or services, the appearance of new competitors, the alteration in the tastes of consumers, and so on.

Economic risk is a direct consequence of investment decisions. So the structure of the company's assets is responsible for the level and variability of operating benefits.