When there are unsustainable rapidly rising prices of some type of financial asset, such as stocks, we refer to this as a(n):
A. asset price bubble.
B. bad-precedent problem.
C. moral-hazard problem.
D. liquidity trap.
Answer: A
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A single-price monopoly has the demand and marginal cost schedules given in the above table. What is the profit-maximizing level of output and price?
What will be an ideal response?
The most basic concepts on which the social science of economics rests are
a. consumers and producers. b. money, interest rates, and exchange rates. c. supply and demand. d. scarcity and choice.
The price of a futures contract represents the price the market expects the commodity to be when the contract expires.
a. true b. false
Which of the following represents a stock's fundamental value?
A) the price the stock would sell at in the midst of a rational bubble B) the price the stock would sell at if the interest rate were zero C) the present value of its expected future dividend payments D) the simple sum of its future dividend payments E) none of the above