Which one of the following would best describe a mutual fund?
A. An investment that is available at many banks and is FDIC insured
B. A company that manages a portfolio that is purchased by pooling the money of its investors
C. A debt contract that is issued by a company and offers interest payment on the loan
D. Ownership of shares in a corporation with no guarantee the company will be profitable
B. A company that manages a portfolio that is purchased by pooling the money of its investors
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When there is a resource for which property rights are NOT well defined and there is a difference between private costs and social costs, then all but which of the following is a way to close the difference?
A. subsidization B. taxation C. regulation D. the free market system
Voting in large elections is irrational unless people get something like a "warm glow" from having voted.
Answer the following statement true (T) or false (F)
If a firm in a perfectly competitive market is producing at a level of output where marginal costs exceed marginal revenue, its profits:
A. must be negative. B. will increase if it produces less. C. are maximized. D. cannot be determined.
When the price of knit scarves decreases by 7 percent, their sales increases 7 percent. This example shows ______ demand.
a. unit elastic b. perfectly elastic c. unit inelastic d. perfectly inelastic