Which of the following is a TRUE statement about stock markets?
A) Economists can make above-average profits in the stock market because of their specialized knowledge of economics.
B) It is always better to buy growth stocks than the older and more stable blue-chip stocks.
C) The stock market on average over time is random and totally unrelated to the performance of the economy.
D) It is illegal for a friend of a corporate executive to make large profits in the stock market by using his inside information.
Answer: D
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Public franchises create monopolies by restricting
A) demand. B) prices. C) entry. D) profit.
Refer to Figure 26-10. In the figure above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Federal Reserve?
A) an open market purchase of Treasury bills B) a decrease in the required reserve ratio C) an open market sale of Treasury bills D) an increase in income taxes
Which of the following type of funds cater to wealthy individuals, are not bound by government regulations, and are actively traded in foreign exchange markets?
A) pension funds B) mutual funds C) hedge funds D) exchange funds
As more bananas are consumed, marginal utility decreases at
a. the same rate for all people, approaching but never reaching zero b. the same rate for all people, and eventually becomes negative c. different rates for different people, and for everyone, it approaches but never reaches zero d. different rates for different people, and eventually, for everyone, it becomes negative e. different rates for different people, and eventually reaches zero where it remains (it cannot be negative)