Mutual funds offer investors:
A. a lower return for less risk than what the investor could earn on his own.
B. a greater return for greater risk than what an investor can earn on his own.
C. a lower return for more risk than what the investor could earn on his own.
D. a way for individuals to eliminate the idiosyncratic risk associated with any single investment.
Answer: D
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The need for exchange controls may arise from
(a) overvalued exchange rates. (b) export promotion policies. (c) a current account surplus. (d) all of the above.
Which of the following statements is TRUE?
A) Government spending as a percent of total national income has continuously decreased since the 1950s. B) Transfer payments are money payments made by the government for which no goods or services are currently received. C) Education is the largest category of federal government expenditures. D) Transfers in kind include Welfare, Social Security, and unemployment insurance benefits.
Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question. Assume the price of Y is $1 per unit. In Figure 19.3, point E
A. Is a high level of utility but not affordable. B. Is optimal and affordable. C. Gives the consumer a very high level of utility and is affordable. D. Represents a very low level of utility and is not desirable.
?Hair Pins /hourBandanas /hourNigel410Mia93
Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Mia's opportunity cost of producing one bandana is:
A. 1/3 of a hair pin. B. 2.5 hair pins. C. 3 hair pins. D. 9 hair pins.