Explain how mutual funds are advantageous to small investors.
What will be an ideal response?
Mutual funds offer their customers portfolios of various groups of domestic stocks, foreign stocks, and bonds. Small investors can easily put their money into these funds, thereby reducing the risks of owning individual stocks and ensuring that the overall market does not significantly outperform their portfolios. Mutual fund transactions can be carried out by telephone or over the Internet, and investors can also easily check on the past performance of the different funds and obtain other pertinent information.
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The effect of imposing a minimum wage rate on the quantity of labor employed is
a. greater the less elastic is the demand for labor b. greater the less elastic is the supply of labor c. zero if the minimum wage rate is above the equilibrium wage rate d. greater the more elastic is the demand for labor e. greater the closer the minimum wage is to the equilibrium level
Dan owns one of the many bakeries in New York City. Which of the following events will lead to an increase in Dan's demand for the services of bakers? (i) The price of muffins increases. (Muffins are Dan's specialty.) (ii) Dan adds three new ovens to the kitchen area to help the bakers work faster. (iii) Local bakers form a union to protect themselves from low wages
a. (i) and (ii) only b. (ii) and (iii) only c. (i) and (iii) only d. (i), (ii), and (iii)
When GDP decreases, consumption spending increases.
Answer the following statement true (T) or false (F)
Which of the following groups is engaging in rent seeking?
a. Karst Salvage, a non-profit that accepts donations to educate people about the importance of caves b. Safer Rides, a group that lobbies elected officials to get safety features added to cars c. Daring Drones, a group that makes donations to officials hoping to get permits to fly in restricted areas d. Long-time Logging, which donates money to campaigns of politicians who promise to help preserve forests