If Stock A and Stock B both increase in value at the same time, they are
A) negatively correlated.
B) uncorrelated.
C) positively correlated.
D) certain bets.
C
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Which of the following provides the best explanation for diseconomies of scale?
a. the firm is too small to take advantage of specialization. b. large management structures may be bureaucratic and inefficient. c. if there are too many employees, the work place becomes crowded and people become less productive. d. average fixed costs are rising.
Gross domestic product (GDP) includes:
a. used goods sold in the current time period. b. only final goods and services. c. foreign goods as well as domestically produced goods. d. intermediate as well as final goods.
An inferior good:
a. exists only in theory. b. is only purchased by people who do not recognize quality. c. is sometimes called a "lemon." d. has an income elasticity between zero and one. e. is one where the demand curve shifts to the left when income goes up.
The following table shows Alex's estimated annual benefits of holding different amounts of money. Average money holdingsTotal benefit$700$50$800$59$900$66$1,000$71$1,100$74How much money will Alex hold if the nominal interest rate is 8 percent? (Assume she wants her money holdings to be in multiples of $100.)
A. $900 B. $800 C. $700 D. $1,000