If the efficient market hypothesis is correct, then
a. index funds should typically beat managed funds, and usually do.
b. index fund should typically beat managed funds, but usually do not.
c. mutual funds should typically beat index funds, and usually do.
d. mutual funds should typically beat index funds, but usually do not.
a
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When deciding whether to engage in an activity or how much to do, people should follow
A) the principle of microeconomics. B) the marginal principle. C) the principle of macroeconomics. D) the law of supply and demand.
Suppose that an economy is currently producing at a point that lies inside of its production possibilities set. Which of the following would best explain this circumstance?
A) The prevailing level of technology prevents the economy from producing at a point closer to the frontier of the production possibilities set. B) The economy does not have enough resources to produce at a point closer to the frontier of the production possibilities set. C) The economy is experiencing a high level of unemployment. D) Any of the above statements could explain this situation. E) None of the above statements could explain this situation.
The Federal Reserve's two main ________ are the money supply and the interest rate
A) fiscal tools B) fiscal policy targets C) policy tools D) monetary policy targets
Which of the following can create demand-pull inflation?
a. Excessive aggregate spending. b. Sharply rising oil prices. c. Higher labor costs. d. Recessions and depressions.