Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings. This phenomenon is
A) clearly inconsistent with the efficient markets hypothesis.
B) consistent with the efficient markets hypothesis if the earnings were not as high as anticipated.
C) consistent with the efficient markets hypothesis if the earnings were not as low as anticipated.
D) consistent with the efficient markets hypothesis if the favorable earnings were expected.
B
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One problem with using monetary policy to address "bubbles" in asset markets is that:
A. monetary policy is well-suited for addressing the problem of inappropriately high asset prices. B. reducing the real interest rate to deal with the bubble could lead to inflation. C. the Federal Reserve is not interested in stabilizing output. D. doing so presupposes that the Federal Reserve is better than financial-market professionals at identifying bubbles.
What are the two ways of calculating the slope of a curved line?
What will be an ideal response?
The free rider problem is triggered when a good is ______________, and the tragedy of the commons arises when a good is ________________
A. nonexcludable; both rivalrous and nonexcludable. B. rivalrous; both rivalrous and nonexcludable. C. both rivalrous and nonexcludable; rivalrous. D. both rivalrous and nonexcludable; excludable.
Which of the following illustrates consumer surplus?
a. Jon and Gabi find the perfect apartment, but it is $100 per month over budget. b. When Amy shops for a new car, she finds dozens of options in her price range. c. Beck finds an online deal for a plane ticket to Miami that is $100 under his budget. d. Stores cannot stock enough round sunglasses after a celebrity promotes the style.