Which of the Following Is a Disadvantage of the Dow

question 85

Multiple Choice

Which of the following is a disadvantage of the Dow Jones Industrial Average (the Dow) ?

• A) The Dow is not popular among the general public.
• B) The Dow does not provide good historical data.
• C) The Dow tracks only the price of the stock,not the overall value of a company.
• D) The Dow has not added any companies from its original list.
• E) The Dow resets to 10,000 at the beginning of each year.

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Definitions:

Economic Revival

A period of growing business activity signaling the end of a recession or economic downturn, often characterized by increases in employment, consumer spending, and investment.

Trade Deficit

A condition in which a nation's imports of goods and services surpass its exports, resulting in a deficit in the trade balance.

Absolute Advantage

A situation where a country, entity, or individual can produce a good or service more efficiently (using fewer resources) than another.

Comparative Advantage

The ability of a country or individual to produce a good or service at a lower opportunity cost than another entity, leading to more efficient trade.