What is a mutual fund? What advantage does owning a share in a mutual fund have over owning a share of stock?
A company whose assets are the stocks and bonds of other companies is a mutual fund. Holding a share in
a mutual fund allows you to minimize risk by diversifying. Instead of holding a share of stock in one
company, you, in effect, own fractions of stocks in hundreds of companies.
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Needs-tested spending is defined as
A) spending by the President on the White House. B) spending on programs for people qualified to receive benefits. C) spending that increases in expansions and decreases in recessions. D) taxes paid by those qualified by their income. E) spending by Congress on its own perks of office.
Which of the following statements is true?
A) In the short run, a firm can vary all its inputs. B) In the long run, a firm cannot vary any of its inputs. C) Short-run cost curves lie above long-run cost curves. D) Short-run cost curves lie below long-run cost curves.