Although Several Stock Indexes Are Available to Inform Investors of Market

question 98

Multiple Choice

Although several stock indexes are available to inform investors of market changes,the Dow Jones Industrial Average:

• A) is the broadest-based of the market indexes.
• B) is the only reliable market index.
• C) accounts for approximately 70% of U.S. market value.
• D) is the best-known of the market indexes.

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Definitions:

Price Takers

Firms or individuals who accept the market price as is because they do not have enough market power to influence the price of the goods or services they sell.

Downward-Sloping Demand

A concept in economics that indicates demand for a good or service decreases as its price increases, assuming all other factors remain constant.

Output

The amount of goods or services produced by a company, industry, or economic system.