If a share of stock is correctly valued today, a ________ in the stock market is when you purchase a stock because you expect other people will be willing to pay more for the stock in the future.
A. floatation
B. hiccup
C. balloon
D. bubble
Answer: D
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The concept of rational ignorance can explain why the government might provide more than the efficient quantity of a public good
Indicate whether the statement is true or false
In the view of the new classical economists, an increase in the money stock will affect real output and employment only if the increase in the money stock
a. was caused by an aggregate supply shock. b. is accompanied by an expansionary fiscal policy shift. c. was anticipated. d. was unanticipated.
Figure 9.6 shows an individual's demand curve for time per month spent telecommunicating while driving (talking on the car phone.) A car phone is useless except for talking with somebody who is not in the car
If calls are priced at ten cents per minute, what is the consumer surplus derived from talking? What is the most this person would pay for the car phone? Explain.
Identify the correct statement.
A. Freer trade in environmental services actually lowers environmental quality, especially in the developing countries. B. There is sufficient evidence to prove that free trade simply promotes production and consumption of products that tend to cause large amounts of pollution. C. It is not easy to find cases where government policies that limit or distort trade result in environmental damage. D. Environmentalists often fear that free trade permits production to be shifted to countries that have lax environmental standards.