Mutual funds are attractive because:
A. they usually have inside information because they run most of the companies they invest in.
B. they have inside information that is not available to other investors.
C. they provide high returns from purchasing the financial securities of a few select companies.
D. they provide the investor with greater diversification at a lower cost than what most investors could obtain individually.
Answer: D
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The relationship between the AS-AD model and the Phillips curve points out that as aggregate demand increases, the unemployment rate
A) decreases and the price level falls. B) increases and the inflation rate rises. C) increases and the inflation rate falls. D) decreases and the inflation rate does not change, only the price level rises. E) decreases and the inflation rate rises.
Which of the following is true of matrix organizations?
A. Employees are more likely to focus on the overall business process rather than on their functional specialty. B. Influence costs are low as there are separate product and functional managers. C. Employees have strong incentives to cooperate with other teams within a company. D. There are well-defined lines of authority, eliminating scope of interdependence and lack of incentives.
When Alison, a college math professor, leaves her job at a small rural college and starts looking for a job at a large urban university, she is _____.
(A) Frictionally unemployed (B) Structurally unemployed (C) A discouraged worker (D) Cyclically unemployed
The addition to total costs associated with the production of one more unit of output is referred to as
A. marginal cost. B. average cost. C. opportunity cost. D. overhead cost.