Which of the Following Statements Is False

question 57

Multiple Choice

Which of the following statements is false?

• A)The purpose of investing in a closed-end fund,exchange-traded fund or open-end mutual fund is to earn a financial return.
• B)Income dividends are the earnings that a fund pays to shareholders from its dividend and interest income.
• C)Capital gain distributions are the payments made to a fund's shareholders that result from the sale of securities in the fund's portfolio.
• D)The only way to make money on a mutual fund is by selling shares at a higher price than was initially paid for them.
• E)Income dividends are taxable.

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Definitions:

MRP

Marginal Revenue Product, the additional revenue generated by employing one more unit of a resource, critical in resource allocation.

Capital

Financial assets or resources that businesses or individuals use to generate wealth through investment, production, or development.

Labor

The physical and mental effort used in the production of goods and services, often considered one of the primary factors of production.

Marginal Physical Product

The extra yield obtained by employing an additional unit of a variable factor, while keeping all other factors unchanged.