An asset's price and rate of return:
A. are independent of each other.
B. can be either inversely or directly related.
C. are inversely related.
D. are directly related.
C. are inversely related.
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When the representative firm maximizes profits
A) production is at its maximum. B) the slope of the production function is at its flattest. C) labor costs are minimized. D) the marginal product of labor equals the wage.
Which one of the following statements best describes the monetarist view of economic stabilization?
A. Discretionary policies often do more harm than good. B. Monetary policy should be used to fine-tune the economy. C. Fiscal policy is more effective than monetary policy. D. Both monetary and fiscal policy are unable to influence output, employment, and the price level.
A coordination problem usually occurs in situations where there is:
A. more than one Nash equilibrium. B. a unique, secure strategy for both players. C. no Nash equilibrium in a game. D. a unique, but undesirable Nash equilibrium.
If a producer is willing to receive at least $2 for a pen that she manufactures but she actually receives $7 for it. The producer surplus of the pen for that producer is
A) $2. B) $5. C) $9. D) -$5.