The Logical Implication of the Scarcity Principle Is That

question 76

Multiple Choice

The logical implication of the scarcity principle is that:

• A) one will never be satisfied with what one has.
• B) as wealth increases, making choices becomes less necessary.
• C) as wealth decreases, making choices becomes less necessary.
• D) choices must be made.

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Definitions:

Trading Costs

Expenses associated with buying and selling securities, including commissions, spreads, and fees.

Open-end

A type of mutual fund that does not have a fixed number of shares and can issue new shares or redeem existing shares at any time based on investor demand.

Net Asset Value

The per-share value of a mutual fund or exchange-traded fund, calculated by dividing the total value of all securities in the portfolio by the number of shares outstanding.

Net Asset Value

Net Asset Value (NAV) is the per-share value of a mutual fund or ETF, calculated by dividing the total value of all the assets in the portfolio, minus liabilities, by the number of shares outstanding.