Which of the following has enhanced the ability of investors, without any special business skills, to benefit from the ownership of corporate America?
a. the increased availability of mutual funds that make it possible for even small investors to purchase a diverse stock portfolio at a low cost
b. an increased tendency of small investors to buy and sell stock frequently, using stock tips from investment experts
c. the virtual disappearance of business failures among corporations with publicly traded stock shares
d. all of the above
A
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Joe is shopping for a new computer. A computer can be delivered to Joe's home for $1,200. Alternatively, Joe can pick up the same computer at the warehouse for $1,000. How should Joe buy the computer?
A. Joe should drive to the warehouse because $1,000 is less than $1,200. B. Joe should drive to the warehouse if his cost of driving to the warehouse is less than $200. C. Joe should drive to the warehouse because the $200 he would save by driving to the warehouse is more than 10% of the purchase price. D. Joe should drive to the warehouse if his cost of driving to the warehouse is greater than $200.
If the average propensity to consume is 1.0, the marginal propensity to consume is 0.8, and real disposable income increases by $100, the additional saving is
A) $0. B) $20. C) $80. D) $100.
Diseconomies of scale refers to when in the long run:
A. average total cost does not depend on the quantity of output. B. an increase in the quantity of output increases average total cost. C. an increase in the quantity of output decreases average total cost. D. None of these is true.
The long-run aggregate supply curve is
A. vertical. B. horizontal. C. upward sloping. D. U-shaped.