If the output of product X is such that marginal benefit equals marginal cost:
A. the correct amount of resources is being allocated to X's production.
B. the value of producing X exceeds the value of producing alternative products with the available resources.
C. there can be a net gain to society by allocating either more or less resources to producing X.
D. resources are overallocated to the production of X.
Answer: A
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A group of stocks of individual firms that are placed into one investment pool by an investment company is commonly known as a:
a. pooled stock venue. b. stock clump. c. stock agreement. d. mutual fund. e. maximal diversified investment (MDI).
The Fed's initial step in pursuing restrictive monetary policy using the federal funds rate is to:
A. announce a higher target. B. sell bonds to banks and the public. C. raise the discount rate. D. raise the prime interest rate.