Jane is a 22-year-old college graduate. She has just started working at a job that pays her $75,000 per year. Since you have had an economics course, Jane asks you for advice on where to invest the money she is saving for her retirement. What do you recommend?
History indicates that the stock market would be a good place for Jane to invest her funds. When a diverse set of stocks is held over a lengthy time period, historically, stocks have yielded a high rate of return, and the variation of that return has been relatively small. Stock mutual funds make it possible for small investors such as Jane to hold a diverse portfolio. Indexed equity funds are particularly attractive because they generally have low management and operating costs, and therefore, their fees are lower.
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If consumers spend their money only on beef and vegetables, then the substitution effect of an increase in the price of beef would result in consuming ________ beef and ________ vegetables
A) more; more B) less; fewer C) more; fewer D) less; more
A natural monopoly is characterized by the fact that its average costs increase rather than decrease when its output expands.
Answer the following statement true (T) or false (F)
Along an indifference curve
A) every combination of goods the consumer can purchase with their income is given. B) the prices of goods will change. C) utility increases as you move to the right. D) every combination of the goods give the same level of satisfaction.
Excessive process regulation may
A. Raise the costs of environmental cleanup. B. Cause market failure. C. Reduce pollution most efficiently. D. Encourage cost-saving innovation.