The Standard & Poor's 500 Index Differs from the Dow

question 64

Multiple Choice

The Standard & Poor's 500 Index differs from the Dow Jones Industrial Index because:

• A)It takes into account the stock prices of 500 of the largest firms, which is less than the DJIA
• B)It is a price-weighted index, where the DJIA is a value-weighted index
• C)Larger firms are less important in the S&P 500 than in the DJIA
• D)It takes into account the prices of more stocks and it uses a different weighting scheme

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Definitions:

Two-Point Discrimination

The ability of the skin to distinguish two nearby points as separate stimuli, a measure of sensory nerve function.

Nociceptors

Sensory receptors that respond to potentially harmful stimuli by sending nerve signals to the brain triggering the sensation of pain.

Chemoreceptors

Sensory receptors that respond to chemical stimuli, such as those found in the nose, tongue, or certain body cells.

Special Sense

A type of sensory experience that includes vision, hearing, taste, smell, and balance, involving specific organ systems.