The PE ratio is a measure of how highly a stock is valued relative to its current earnings
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following statements is true regarding scarcity?
A) An economy experiences scarcity only when the incomes of its citizens decline. B) All citizens in a wealthy economy experience scarcity. C) Scarcity affects poorer countries only. D) Poor people experience scarcity more often than do rich people. E) Scarcity could be overcome if people would make all choices in the social interest.
If the demand curve for bottled water shifts leftward and the supply curve of bottled water shifts leftward, the equilibrium
A) price of bottled water definitely increases. B) price of bottled water definitely decreases. C) quantity of bottled water definitely increases. D) quantity of bottled water definitely decreases.
A contestable market is similar to a perfectly competitive market in that there
A) are barriers to entry. B) are no barriers to entry. C) can be only one firm in the market. D) will be no entry if the existing firm earns an economic profit.
For most firms, any of the following could be considered an accident except which one?
A) failing to earn an economic profit B) audit failure C) product failing safety standards D) patent infringement