The Economic Question of What Will Be Produced Is

question 164

Multiple Choice

The economic question of what will be produced is

• A)primarily answered by the government in a system of pure capitalism
• B)primarily answered by markets in a command economy
• C)faced by all economies regardless of their wealth
• D)does not have to be answered by economies possessing great wealth
• E)cannot be illustrated by the economic concept of the production possibilities frontier

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Definitions:

Management Fee

A charge paid to a company's managers for their services, often a percentage of managed assets or profits.

Net Return

The profit or loss from an investment after all expenses, including taxes, fees, and costs, have been subtracted.

Market Neutral

An investment strategy aiming to achieve returns independent of the overall market direction by simultaneously buying assets expected to rise and shorting assets expected to fall.

Beta

Beta is a measure of a stock's volatility in relation to the overall market; the market itself has a beta of 1.0, and individual stocks are ranked according to how much they deviate from the market.