Suppose you invest 1000 in a mutual fund If the annual return of that fund is 5

Suppose you invest 1000 in a mutual fund if the

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43.Suppose you invest $1,000 in a mutual fund. If the annual return of that fund is 5%, approximately how many years will it take before your fund is worth $2,000? A)20 years B)never C)14 years D) 10 years 44.Compared to stocks, art investments have _____ monetary returns because they offer ______ nonpecuniary returns. 45.The market solves the incentive problem when allocating resources because the: A) 46.Which of the following statements is TRUE? I.Taxes may reduce consumption by exactly the same amount as government regulations. II.Taxes typically cost more than government regulations because taxes raise prices whereas regulations simply limit quantity. III.Command and control policies effectively reduce consumption, but they may not be the lowest cost method for doing so. Use the following to answer questions 47-48: Page 13
Figure: Trade 2 47.(Figure: Trade 2) Refer to the figure. In this figure representing the market for oil, what are the total revenues generated by the tariff? A)$10,000 B)$25,000 C)$5,000 D)$20,000 48.(Figure: Trade 2) Refer to the figure. In this figure representing the market for oil, by how much will domestic oil consumption increase or decrease following a tariff on imported oil? 49.After a hurricane, the prices of many items rise. How BEST might the government help poor people be able to afford to buy goods and services? Page 14
50.Assume that demand decreases by 3 percent, the absolute value of price elasticity of demand is 1.0, and price elasticity of supply is 1.0. What is the percentage price change in this case? Please turn in your scantron AND cover page. You may keep this test question sheet for review. Make sure NAME,STUDENT #, and VERSION # are on scantronPage 15

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