If a mutual fund with a back-end-load is not sold within the stipulated time period, the investor is ...

If a mutual fund with a back-end-load is not sold within the stipulated time period, the investor is not required to pay any fee to the fund manager.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

A simple model of information acquisition for shopping predicts that, the larger the percentage of dealers in an area seen by the typical shopper, the _____ will be the dispersion of the prices _____ relative to their average.
 a. larger; the buyers pay
  b. larger; the dealers quote
  c. smaller; the buyers pay
  d. smaller; the dealers quote

QUESTION 3

The law of diminishing marginal utility states that as additional units are consumed, satisfaction per unit will decline.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

Which of the following is true in the short run?
 a. MC = ATC at the lowest point of ATC.
 b. MC = AVC at the lowest point of AVC.
 c. When AVC is at its minimum point, ATC is falling.
  d. All of the above are true.

QUESTION 5

Index mutual funds purchase shares of stock in those companies which are included in the market based indexes.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 6

Unlike developed countries, people in under-developed countries usually haggle over the prices of everyday items because:
 a. the cost of production is low.
  b. the products are in general of poor quality.
  c. of the differences in the opportunity cost of time.
  d. adequate substitutes are available.