4. which of the following is a risk of large-scale government borrowing? a. a gdp loss b. lower interest rates c. higher prices and interest rates d. lower employment student aincorrect reference: section 3.6 5. a merger between a company and one of its suppliers is known as a merger. a. supply b. vertical c. demand d. horizontal student aincorrect reference: section 3.4 8. one advantage of preferred stock over common stock is that preferred stockholders a. get a cheaper price on stock. b. are entitled to a fixed dividend. c. have the right to vote for the board of directors. d. participate in managing the company. student cincorrect reference: section 3.2 17. a characteristic of a natural monopoly is that a. adding businesses in competition would increase cost to the consumer. b. the firm is dedicated to the use of natural resources. c. there's no government intervention in the market. d. the firm is supported by the consumer and voted into existence by the voters. student bincorrect reference: section 3.5 18. which of the following is an advantage of investing in a mutual fund? a. no risk b. guaranteed profit c. professional management d. investments are made in only one company student dincorrect reference: section 3.2 20. what's the term for the profit made from selling a stock at a higher price than the price paid for the stock? a. capital gail b. depreciation c. stock profit d. dividend student cincorrect reference: section 3.2