Which of the Following Statements Is False

question 49

Multiple Choice

Which of the following statements is false?

• A)Investors purchase mutual funds for diversification.
• B)Investors purchase mutual funds because of professional management.
• C)Investors who purchase mutual funds are guaranteed a higher rate of return than a comparable investment in stocks or bonds.
• D)Professional mutual fund managers work for an investment company.
• E)Even the best portfolio managers sometimes make mistakes.

Analyze the implications of market price changes on firm’s profit-maximizing output and decision to stay in business.

Understand the role of marginal revenue and marginal cost in the production decision-making of price-taker firms.

Recognize the impact of regulatory changes on industry competition and pricing.

Understand the conditions for long-run economic profit or loss in price-taker markets.

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Definitions:

Act Consequentialists

Adherents of a branch of consequentialism that assesses each action by the goodness of its consequences, without reliance on general rules.

Obedience to Rules

The act of following directives, standards, or laws established by authorities or societies to maintain order and achieve collective goals.

Equal Worth

The principle that all individuals have the same intrinsic value, regardless of their circumstances, and should be treated with dignity and fairness.

Maximum Extent

The greatest possible degree or limit to which something can be extended or enlarged.