When a price rise of an asset can be justified by fundamental concepts and past experiences, then such a price rise does not constitute a classic bubble
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
A firm in monopolistic competition ________ influence its price and ________ influence the market average price
A) can; can B) can; cannot C) cannot; can D) cannot; cannot E) can; only in the short run can
In profit centers
a. Managers are difficult to evaluate because there is no simple metric of how well they performed b. Managers typically do not have the information to run their division efficiently c. Managers' decisions can affect other divisions d. Managers typically do not have the incentives to run their division efficiently
How are the economic forces that apply to renewable resources different than those that apply to non-renewable resources?
a. Non-renewable resources must be protected by government policies to prevent depletion. b. Non-renewable resources do not have any substitutes so the economic forces are different than those for renewable resources.. c. Both renewable and non-renewable resources may become scarcer over time so the economic forces at work are similar. d. Renewable resources are not subject to the laws of economics since the scarcity condition no longer holds.
Market power refers to the
a. power of a single person or small group to influence market prices. b. ability of a person or small group to successfully market new products. c. power of the government to regulate a market. d. importance of a certain market in relation to the overall economy.