An Investment Consultant Is Recommending a Certain Class of Mutual

question 154

True/False

An investment consultant is recommending a certain class of mutual funds to the clienteles based on its exceptionally high probability of gain.It is an unethical practice not to also recommend a class of mutual funds with an exceptionally high probability of loss.

Analyze the concept of absolute advantage in the production of goods.

Interpret production possibility frontiers and their implications for trade and specialization.

Evaluate the impact of specialization and trade on world production and consumption.

Calculate the opportunity cost of producing goods in different countries.

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Definitions:

Cartels

An association of independent firms or countries that agree to coordinate their production and pricing decisions to monopolize a market and maximize collective profits.

Collusive Agreement

A secret or illegal cooperation or conspiracy, especially between competitors, aimed at deceiving or gaining an unfair advantage in the market.

Dominant Firm

A company that has a major share of the market for a particular product or service, often able to influence market conditions.

Competitive Fringe

Small, less dominant firms in a market that compete at the periphery with the larger dominant firms, often by focusing on niche segments.