What is a mutual fund? How do mutual funds differ from stocks and bonds?
What will be an ideal response?
A mutual fund is a professionally managed portfolio that includes a collection of assets (stocks, bonds, or both) that are purchased by pooling the money of a group of investors. Gains or losses in the portfolio accrue directly to investors. Types of mutual funds vary, including specific industry funds, index funds and others. Mutual funds differ from stocks and bonds because they spread risk across a large range of investments.
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If a firm can adjust its employment of all inputs, then it is
a. experiencing economies of scale. b. in the long run. c. off its expansion path. d. limited only by the capacity of its fixed capital.
Zero profit in the economic sense means that firms are earning a normal rate of return.
Answer the following statement true (T) or false (F)
Suppose a previously competitive labor market turns into a monopsony. The labor supply curve faced by the new monopsonist is:
a. above the labor supply curve under perfect competition. b. the market supply curve of labor. c. below the labor supply curve under perfect competition. d. changed because workers are now more willing to supply labor. e. perfectly horizontal.
In a country with a working-age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. If 500,000 of those unemployed are cyclically unemployed, what is the natural unemployment rate?
A) 8.3 percent B) 5.6 percent C) 11.1 percent D) 9.4 percent E) none of the above