If stock prices follow a random walk, then stock investors can make large profits by
a. buying stocks whose prices have been falling for several days.
b. buying stocks whose prices have been rising for several days.
c. performing fundamental analysis of stocks using data contained in annual reports.
d. using inside information.
d
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Strategic complementarity refers to
a) two trade partners producing goods in which they have the greatest relative efficiency, and sharing the benefits through trade b) the increase in demand for one good when the price of another good falls c) a market failure in which individual decisions are not coordinated d) the relationship between capital and labor during a business cycle e) government subsidies for investment
Exhibit 7-11 A firm's cost and marginal revenue curves
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In Exhibit 7-11, the profit-maximizing output level at the price of $8 is:
A. 0. B. 7. C. 8. D. 10.
To face scarcity means individuals
A) choose. B) economize. C) sacrifice some plans over others. D) all of the above.
When the government runs deficit, it causes the cost of borrowing to:
A. increase, which decreases private demand for loanable funds. B. decrease, which decreases private demand for loanable funds. C. increase, which increases private demand for loanable funds. D. decrease, which increases private demand for loanable funds.