In order to outpace inflation when investing, your investments need to have a lower rate of return than the rate of inflation.
- An entrepreneur keeps backup funds in a savings account so that if their business experiences a loss, they will be able to recuperate. What type of risk management is this an example of? Reducing risk. Sharing risk. Avoiding risk. Maximizing risk.
- One of the three economic questions deals with deciding what goods and services should be produced. What the costs of production should be. How goods and services will be marketed. How consumers will receive products.