By bundling share purchases of many investors together mutual funds can take advantage of economies of scale and thereby lower
A) adverse selection.
B) moral hazard.
C) transactions costs.
D) diversification.
C
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During a period when new entrants are being attracted to an industry, we would expect that: a. economic profits are positive
b. as a result, economic profits are falling. c. as a result, economic profits are rising. d. both (a) and (b) are true.
A testable proposition that predicts how people will react to changed circumstances is called a hypothesis
a. True b. False Indicate whether the statement is true or false
Over the past several decades in the United States, the labor-force participation rate of women has increased and the labor-force participation rate of men had decreased
a. True b. False Indicate whether the statement is true or false
If the absolute price of a new car is $40,000 and the relative price of a laptop computer in terms of cars is 1/40 of a car, it follows that the absolute price of the laptop is
A) $10,000. B) $1,000. C) $4,000. D) $2,000. E) $1,500.