An investor will generally find that hiring an investment firm to actively manage his or her portfolio will
A) result in a higher return than would be received from an index mutual fund.
B) be less expensive than simply placing money in an index mutual fund.
C) result in a higher return, but will be more expensive than placing money in an index mutual fund.
D) result in about the same return, but be more expensive than placing money in an index mutual fund.
D
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Which of the following statements is NOT true about the relationship between the dollar value of total output and total income?
A) The dollar value of total output equals total income because profit is considered a cost of production. B) The dollar value of total output equals total income because of the economic definition of profit. C) The dollar value of total output equals total income because profit is not considered a cost of production. D) The dollar value of total output equals total income because the spending of one group is the income of another.
To create a market
A) roles must be assigned. B) agents need instructions. C) property rights must be defined. D) transactions costs must be zero.
Economists argue that when the price of a textbook rises, students reduce their quantity demanded of textbooks. This cause-and-effect relationship holds only under conditions of
a. moderate price increases b. market flexibility c. complete information d. ceteris paribus e. consumer sovereignty
Firms with identical cost structures in a competitive market will have an upward sloping market long-run supply curve
a. true b. false