Mutual funds have:
A. increased the risks associated with constructing a portfolio.
B. reduced the costs associated with gathering information on stocks and bonds.
C. increased the transactions costs associated with participating in financial markets.
D. been created for very wealthy individuals with a lot of money to invest.
Answer: B
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Giving in to the demand of protestors, suppose the French government reduces the tax on gasoline by 15 percent. Neither the demand for gasoline nor the supply of gasoline is perfectly elastic or inelastic
As a result of the tax cut, the price for a gallon of gasoline paid by buyers A) falls by 15 percent. B) rises by 15 percent. C) falls by less than 15 percent. D) rises by less than 15 percent. E) falls by more than 15 percent.
The nominal interest rate approximately equals which of the following?
A) the real interest rate minus the inflation rate B) the real interest rate plus the inflation rate C) the real interest rate minus the growth rate of real GDP D) the real interest rate plus the growth rate of real GDP
In the United States, which of the following is an example of a government-inhibited good?
A) museums B) concerts C) cigarettes D) sports stadiums
The figure below depicts the short-run market equilibrium in a perfectly competitive market and the cost curves for a representative firm in that market. Assume that all firms in this market have identical cost curves.
In the long run equilibrium in this market:
A. price will equal $5, and there will be 20 firms in the industry. B. price will equal $5, and there will be 10 firms in the industry. C. price will equal $5 and total output will equal 500 units, but there is not enough information to determine how many firms will be in the industry. D. price will equal $8, and there will be 20 firms in the industry.