Currently, the Dow Jones Industrial Average Is Computed by ________

question 58

Multiple Choice

Currently, the Dow Jones Industrial Average is computed by ________.

• A) adding the prices of 30 large "blue-chip" stocks and dividing by 30
• B) calculating the total market value of the 30 firms in the index and dividing by 30
• C) measuring the current total market value of the 30 stocks in the index relative to the total value on the previous day
• D) adding the prices of 30 large "blue-chip" stocks and dividing by a divisor adjusted for stock splits and large stock dividends

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Definitions:

Demand Curve

A chart that illustrates the connection between a product's cost and the amount of the product customers are prepared to buy at different price levels.

Equilibrium Quantity

The amount of products or services available and sought at the balance price, where the supplied quantity matches the demanded quantity.

Tax Revenue

The revenue collected by governments via taxes, which is allocated to finance public services and meet governmental duties.

Total Tax

The cumulative amount of taxes imposed by a government from various sources, including income, sales, and property taxes.