Which of the following is true?
A) Managed equity funds merely hold stocks in the same proportion they are represented in a broad stock market index such as the Dow Jones Industrials.
B) Indexed equity funds generally have lower management and operating costs than managed funds.
C) Managed equity funds generally outperform indexed equity mutual funds.
D) Indexed equity funds generally engage in more stock trading than managed funds.
B) Indexed equity funds generally have lower management and operating costs than managed funds.
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For a person to keep his real income steady at a certain level from one year to the next, his nominal income must
A. stay the same as the price index rises. B. rise as fast as the price index. C. rise if the price index falls. D. fall if the price index rises.
Fracking, a technique for breaking up (or fracturing) rock deep under the earth to release natural gas, has
a. increased the price of natural gas. b. decreased the supply of natural gas. c. contaminated natural gas so it is no longer a "clean" fuel. d. decreased the price of natural gas.
If only a few people are affected by an externality, then it is likely that
a. the government will play a role in collective action. b. command-and-control regulation will provide the most efficient solution to the externality. c. a private solution to the inefficiency will occur. d. a private solution will be very difficult to negotiate.
Scarce good
What will be an ideal response?