Compare and contrast hedge funds and mutual funds in terms of the benefits and drawbacks of each
What will be an ideal response?
The benefits of mutual funds include: low management fees, full disclosure of holdings, shares are liquid. and lower risk. The drawbacks are: not allowed to follow certain investment strategies and possibly lower returns. The benefits of hedge funds are: allowed to use sophisticated investment strategies and possibly higher returns. The drawbacks are: high management fees, limited disclosure of holdings, investment in fund may be illiquid, and higher risk.
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Over-harvesting of fish in international waters an example of what economic concept?
a. a production externality b. a consumption externality c. marginal social benefits exceeding marginal private benefits d. private marginal costs exceeding marginal social costs
How does the concept of utility of wealth capture the idea that pain of loss exceeds the pleasure of gain?
What will be an ideal response?