Which of the following statements is false?
A. The Wilshire 5000 is a stock index that consists of the stocks of about 6,500 firms.
B. Instead of buying a mutual fund that consists of various stocks picked by a fund manager you can buy a mutual fund that consists of the stocks that make up a particular stock index.
C. The term Sypders stands for "Standard & Poors Direct Receipts."
D. When an investor buys Spyders they are said to "buy the market."
Answer: C
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The Federal Reserve does not target both the money supply and an interest rate because
A) it would be too confusing to Wall Street and would disrupt the financial markets. B) the Fed cannot achieve a target for both the money supply and an interest rate at the same time. C) it would be illegal according to the Federal Reserve Act. D) it would be too easy for Wall Street to determine what policy the Fed is following and this would destabilize the economy.
Assume that there is an improvement in the technology used by firms in a perfectly competitive industry that is initially in long-run equilibrium. In the short run this would cause:
A) an increase in the firm's economic profit. B) a decrease in the firm's economic profit. C) no change in the firm's economic profit. D) cannot be determined with the information given.
One reason why individuals with greater ability often receive higher wage rates is that they
a. face discrimination b. have low marginal products c. have high marginal revenue products d. face diminishing marginal returns e. often are employed in industries experiencing economies of scale
Which of the following is the clearest evidence of employment discrimination against minority employees?
a. the average wage of minority workers is lower than the average wage of whites. b. the average hours worked by minority employees exceeds the hours worked by whites. c. the mean number of years of schooling of minority workers is lower than that of whites. d. the average wages of minority employees are lower than the average wages of whites with similar productivity characteristics.