The Art of Economics Is

question 30

Multiple Choice

The art of economics is:

• A) the application of the knowledge gained by positive economics to the goals set in normative economics.
• B) purely technical and therefore more objective than positive or normative economics.
• C) purely subjective so that the economist does not have to strive for the same level of objectivity that positive or normative economists do.
• D) the branch of economics farthest removed from practical application, since its goal is to create the most elegant mathematical models.

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Definitions:

More Liquid

Describes an asset or market that allows for assets to be bought or sold quickly without significantly affecting the asset's price.

Front-end Commission

A fee paid when purchasing shares of a mutual fund, upfront, which reduces the amount invested from the start.

Expense Ratio

The annual fee that all funds and exchange-traded funds charge their shareholders, expressed as a percentage of the fund's total assets.

Rate of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's cost.