External shocks to the stock market have little impact on stock prices since investors consider only the long run.
Answer the following statement true (T) or false (F)
False
The price of a stock at any moment is the outcome of supply-and-demand interactions. External shocks will impact either the supply or demand or both, which will cause the equilibrium price and quantity to change.
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If we use GDP to measure our standard of living, then our procedure is
A) accurate because our standard of living depends solely on goods and services. B) inaccurate because our standard of living only depends on used goods and services. C) inaccurate because our standard of living does not depend only on goods and services. D) inaccurate because our standard of living has nothing to do with goods and services. E) accurate only if we use nominal GDP rather than real GDP.
When the price of ice cream rises from $3 to $5 a scoop, the quantity of ice cream bought decreases by 10 percent. The price elasticity of demand for ice cream is _______
A. 5 B. 0.2 C. 50 D. 2.5
Certain hotels offer promotional strategies in which kids under 12 eat free at the hotel's restaurant. This is an example of second-degree price discrimination
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. The purpose of using the four-firm concentration ratio is to calculate how much market share would change in the case of a merger between two of the firms. 2. A minimum price contract is illegal because it would restrict competition. 3. One regulatory option for dealing with natural monopolies is to leave them alone. 4. The purpose of the Dodd-Frank Act was to address numerous accounting scandals involving prominent corporations such as Enron, Tyco International, and WorldCom that occurred as a result of deregulation. 5. If firms were required to pay the social costs of pollution, they would create less pollution but produce less of the product and charge a higher price.