Which of the Following Statements Is (Are) True

question 243

Multiple Choice

Which of the following statements is (are) true?

• A) Consumers are constrained by a budget.
• B) If a consumer decides to spend more on one good, he or she must decide to spend less on another good to satisfy the budget constraint.
• C) The marginal decision rule states that an activity should be expanded if its marginal benefit exceeds its marginal cost.
• D) All of the above statements are true.

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Definitions:

Capital Gain Distributions

Payments made to mutual fund shareholders from the fund's sale of securities that result in a capital gain.

Income Distributions

Income distributions refer to the payment of earnings, interests, dividends, or other income, from an investment or fund to its shareholders or investors.

Rate of Return

The positive or negative return on an investment over a given period, measured as a percentage of the investment's initial price.

Global Funds

Mutual funds that invest in companies located anywhere in the world, including the investor’s own country.