An Individual Buys Shares in a Mutual Fund,which Uses the Proceeds

question 43

Multiple Choice

An individual buys shares in a mutual fund,which uses the proceeds to buy corporate stocks and bonds.This is part of the process by which

• A)total product becomes unequal to total expenditures.
• B)firms release goods to make them available to consumers.
• C)firms obtain investment goods that consumers relinquish claims to.
• D)consumers make an "inventory investment" in goods to be purchased in the future.

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Definitions:

Unit Variable

A measurement that reflects how variable costs change per unit of production or activity level.

Unit Fixed

This specifies a cost or charge that remains constant per unit regardless of changes in the level of activity or volume of production.

Costs

Costs refer to the expenditures incurred by a business in the process of generating revenues.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit.