The Following Data Was Collected on Mutual Fund Prices

question 69

Multiple Choice

The following data was collected on mutual fund prices. Compute a simple aggregate index comparing mutual fund prices in 2015 to mutual fund prices in
2010.

• A) 245.86
• B) 154.51
• C) 153.04
• D) 147.22

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Definitions:

Cartel

A formal agreement among firms (or countries) in an industry to set the price of a product and establish the outputs of the individual firms (or countries) or to divide the market for the product geographically.

Economic Efficiency

A situation in which resources are optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over another's based on their positive experience with that brand.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.