A person who believes strongly in the use of fundamental analysis to choose a portfolio of stocks
a. has a better chance of outperforming the market if stock prices follow a random walk than if they do not follow a random walk.
b. almost always chooses to hold index funds in his or her portfolio rather than actively-managed funds.
c. is spending his or her time wisely if the efficient markets hypothesis is correct.
d. is interested in the likely ability of a corporation to pay dividends in the future.
d
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Suppose the Herfindahl-Hirschman Index (HHI) in the market for chocolate is 3,200. Two companies want to merge. The FTC definitely will challenge the merger if it increases the HHI by more than
A) 150 points. B) 100 points. C) 40 points. D) 200 points.
If there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and consumer surplus plus producer surplus is maximized, then
A) maximum deadweight loss occurs. B) profits are maximized. C) costs are minimized. D) economic efficiency is achieved.
If one allows natural resources to be a factor of production, then it is possible to explain the Leontief Paradox for the United States on the grounds that U.S. imports are natural resource intensive
Indicate whether the statement is true or false
A disadvantage of the corporate form of business organization is that corporate income is taxed twice
a. True b. False