If you think the price of a share of stock ________, but you buy it anyway because you expect to be able to sell it later at a higher price, then you are participating in a stock market price bubble.
A. is currently undervalued
B. reflects its true value
C. misrepresents the current value of the company
D. reflects the interest rate
Answer: B
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Jermaine’s country is relatively small and does not have many natural resources. Nonetheless, it has enjoyed strong economic growth and has become one of the 20 wealthiest countries in the world. How is this possible?
a. Abundant natural resources are often more harmful than helpful to economic growth. b. A lack of natural resources poses no barrier to economic growth. c. Economic growth is unrelated to the availability of natural resources. d. Natural resources are important, but sustained growth depends on other factors.
An inward shift of a nation's production possibilities frontier can occur due to
A) a reduction in unemployment. B) a natural disaster like a hurricane or bad earthquake. C) a change in the amounts of one good desired. D) an increase in the labor force.
A temporary decline in productivity would cause the IS curve to
A. shift up and to the right. B. shift down and to the left. C. remain unchanged. D. shift up and to the right only if people face borrowing constraints.
Freely functioning markets in the real world always result in efficient allocations of resources.
Answer the following statement true (T) or false (F)