Larger Quantities of Any Good Will Be Supplied at Higher

question 96

Multiple Choice

Larger quantities of any good will be supplied at higher prices because

• A)consumers will be more satisfied
• B)higher prices attract resources from other uses
• C)people are naturally lazy and have to be bribed to give up their leisure
• D)price and quantity supplied are inversely related
• E)of the law of decreasing opportunity cost

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Definitions:

Passive Portfolio Management

An investment strategy that tracks a market-weighted index or portfolio, minimizing buying and selling to reduce costs and turnover.

Mispriced Securities

Mispriced Securities are financial instruments that have a market price significantly different from their intrinsic value.

Efficient Market Hypothesis

A theory that suggests all known information is already reflected in stock prices; therefore, it is impossible to consistently achieve higher returns than the overall market.

Nonzero Alphas

Refers to the active return on an investment, indicating performance that deviates from the expected risk-return trade-off.