1. Assume that the County Public Health Department is headed by an Executive Director and has three programs: the vaccination program, the public clinic program, and the senior outreach program. What type of costs is the Executive Director's salary in relationship to the senior outreach program?

a. an indirect cost

b. a direct cost

c. cannot tell from the information provided

d. a step cost

2. If the capital market is in equilibrium then for an asset:

a. Its expected return will be equal to the risk-free rate

b. Its expected return will equal its required rate of return

c. Its expected return will be equal to the market return

d. None of the above