Which of the following could cause a stock market bubble?
A. Changes in dividends
B. Investor euphoria
C. Better enforcement of insider trading laws
D. Changes in the real interest rate
Answer: B
You might also like to view...
Refer to Figure 10-7. Suppose the price of Pilates sessions rise to $30 while income and the price of Yoga sessions remain unchanged. The substitution effect of this price change is represented by the movement from
A) A to B. B) A to C. C) A to D. D) D to B.
When revenue is less than total cost but more than variable cost it implies that:
a. the firm is enjoying positive economic profits. b. the firm is earning normal profits. c. the firm can cover its variable cost and a part of its fixed costs. d. the firm is unable to cover its costs and should shut down. e. the firm is able to cover both its fixed and variable costs.
If monopolistically competitive firms are earning economic profits, then in the transition to the long-run equilibrium: a. more firms will enter the industry
b. prices will tend to fall. c. each firm will produce a smaller quantity of output. d. all of the above will occur.
A model that is an oversimplification for one purpose will likely be an oversimplification for other purposes as well
a. True b. False Indicate whether the statement is true or false