An individual buys shares in a mutual fund, which uses the proceeds to buy corporate stocks and bonds. This is part of the process by which
A) total product becomes unequal to total expenditures.
B) firms release goods to make them available to consumers.
C) firms obtain investment goods that consumers relinquish claims to.
D) consumers make an "inventory investment" in goods to be purchased in the future.
C
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The law of comparative advantage explains why
A. individuals choose specialized careers. B. firms specialize in the production of certain goods. C. nations develop strengths in certain industries. D. All of the responses are correct.
Refer to the production possibilities frontier in the figure above. Which of the following movements requires the largest opportunity cost, in terms of good Y forgone, per extra unit of good X?
A) from point a to point b B) from point b to point c C) from point c to point d D) from point d to point e
In deriving the demand schedule for a good, economists assume that
A) consumers have equal incomes to allocate among goods. B) a consumer will allocate all of her income to one good. C) all other influences on demand except the product price are held constant. D) reported income changes at each point on the demand schedule.
Because of free riders, a private, unregulated market would not produce the efficient quantity of a public good
Indicate whether the statement is true or false