Which One of the Following Is an Example of an Economic

question 55

Multiple Choice

Which one of the following is an example of an economic investment?

• A)putting money in a bank CD
• B)buying a corporate bond or stock
• C)purchasing shares of a mutual fund
• D)building a new bank office

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Definitions:

Sherman Act

An 1890 United States antitrust law that outlaws monopolistic practices and promotes competition.

Price-fixing

An illegal agreement among competitors to set prices at a certain level, rather than competing naturally in the market.

Tying Contracts

Agreements where the sale of one product (the tying product) is conditioned on the buyer purchasing another product (the tied product).

Antitrust Laws

Legislation aimed at preventing anti-competitive practices, monopolies, and to promote fair competition for the benefit of consumers.