Which of the Following Is Correct with Regard to Mutual

question 153

Multiple Choice

Which of the following is correct with regard to mutual funds?

• A) They are oriented toward investors with large amounts of money.
• B) Most mutual funds stress the same goal: growth.
• C) Only managers who have passed an ethics test can work for ethical mutual funds.
• D) A mutual fund that stresses safety of investment would likely invest in treasury bills.
• E) All of these are correct.

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Definitions:

Output Effect

Refers to the impact on the output level of a firm when it changes the price of its product, often analyzed in the context of monopolistic competition and oligopolies.

Substitution Effect

The economic theory that as prices rise, consumers will replace more expensive items with less costly alternatives, thereby altering the demand for these goods.

Wage Rate

The amount of money paid to employees for their work or services, typically expressed per hour or year.

Output Effect

The impact on total production when a firm adjusts its output level in response to a change in price.