1. When price floors are in effect, goods and services:

a. Are still allocated efficiently.

b. Are not necessarily supplied by their lowest-cost producer.

c. do not necessarily flow to their highest-valued use.

d. are neither necessarily supplied by their lowest-cost producer nor do they flow to their highest-value

2. Which statement is TRUE?

a. investing in art is more lucrative than investing in stocks and bonds.

b. Investing in bonds is more lucrative than investing in stocks.

c. investing in real estate is more lucrative than investing in stocks.

d. Because there is a fun factor associated with owning art, the returns to investing in art are reduced by this fun factor.

3. Stock markets are a way of:

a. making everyone rich.

b. raising capital for new investments.

c. equalizing the distribution of wealth.

d. securing long-term savings.

4. Briefly discuss the four pieces of advice on financial investment given in the text.