When investors invest in something simply because everyone else is doing it, they are:
A. suspect to "tulip mania."
B. following a "herd instinct."
C. acting objectively on full information available in the market.
D. leveraging market performance for their own gain.
B. following a "herd instinct."
You might also like to view...
The Keynesian model shows that the economy has a natural tendency toward full employment
a. True b. False Indicate whether the statement is true or false
If firms in a competitive price-searcher market are currently earning economic losses, then in the long run,
a. new firms will enter the market, and the current firms will experience a decrease in demand for their products until zero economic profit is again restored. b. new firms will enter the market, and the current firms will experience an increase in demand for their products until zero economic profit is again restored. c. some existing firms will exit the market, and the remaining firms will experience an increase in demand for their products until zero economic profit is again restored. d. some existing firms will exit the market, and the remaining firms will experience a decrease in demand for their products until zero economic profit is again restored.
The best government policy to reduce poverty is
a. a minimum wage law because the resulting unemployment is small in comparison to the benefits to people it helps. b. an expanded welfare program because people must have an additional "need" such as small children or a disability. c. an in-kind transfer because it ensures that the poor receive what they need most such as food or shelter. d. not obvious. Government programs to reduce poverty have many advantages but also many disadvantages.
Diminishing marginal returns implies
A. decreasing average variable costs. B. increasing marginal costs. C. decreasing marginal costs. D. decreasing average fixed costs.