The fees paid to a mutual fund manager is called:
a. fund fee.
b. service fee.
c. load.
d. dividend.
e. agency fee.
QUESTION 2An all you can eat restaurant illustrates the economic principle:
a. of consumers' inability to maximize their total utility.
b. that economic theory clearly breaks down under certain circumstances.
c. that marginal utility is always positive.
d. that consumers will stop eating when marginal utility is zero.
e. that consumers will stop eating when total utility is zero.
QUESTION 3If average variable cost exceeds marginal cost, then:
a. average variable cost is increasing and the average total cost is decreasing.
b. the average variable cost is decreasing and the average total cost is increasing.
c. both the average variable and average total cost are decreasing.
d. the average variable cost is decreasing and the average total cost may be increasing or decreasing.
QUESTION 4Mutual funds that attempt to mimic the performance of a broad market index, such as the Dow Jones Industrial Average, are known as:
a. socially responsible funds.
b. index funds.
c. equity funds.
d. fixed-income funds.
e. money market funds.
QUESTION 5Suppose a friend gives you two pieces of gum, and you decide to have one piece now and save the other for tomorrow. You do this because:
a. the total utility you get from the two pieces of gum will be higher tomorrow.
b. the marginal utility you get from the second piece will be higher tomorrow.
c. the marginal utility you get from the second piece will be higher today.
d. the marginal utility you get from the first piece will be less today.
e. the total utility you get from the two pieces will be less tomorrow.
QUESTION 6A firm is producing 200 units of output at a total cost of 1,000 . The firm's average variable cost equals 4 per unit. Total fixed cost:
a. equals 1,000.
b. equals 800.
c. equals 200.
d. equals 2.
QUESTION 7Mutual funds that invest only in companies that meet certain criteria and usually exclude companies that produce tobacco, weapons, or alcoholic beverages are known as:
a. socially responsible funds.
b. global funds.
c. equity funds.
d. fixed-income funds.
e. money market funds.
Quick Reply
