Fundamental analysis shows that Quadrangle Company is fairly valued. Then Quadrangle Company unexpectedly improves its production techniques and unexpectedly hires a new CEO away from another very successful competitor. Suppose this has no effect on the price of the stock of Quadrangle Company
a. Fundamental analysis would now show the corporation is overvalued. The fact that the price was unchanged is consistent with the efficient markets hypothesis.
b. Fundamental analysis would now show the corporation is overvalued. The fact that the price was unchanged is not consistent with the efficient markets hypothesis.
c. Fundamental analysis would now show the corporation is undervalued. The fact that the price was unchanged is consistent with the efficient markets hypothesis.
d. Fundamental analysis would now show the corporation is undervalued. The fact that the price was unchanged is not consistent with the efficient markets hypothesis.
d
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A significant feature of developing countries is that they use their labor less efficiently than developed countries
a. True b. False
A competitive firm produces notebooks which sell in the market at $2 each. The firm hires 40 workers. If the market price of the notebooks increases to $3.5 each, which of the following statements is true?
a. The firm's labor demand curve will become flatter. b. The firm's labor demand curve will shift outward parallel to itself. c. The firm's labor demand curve will shift outward parallel to itself. d. The firm's labor demand curve will become steeper.
What are the three limitations on human rationality that behavioral economics emphasizes?
What will be an ideal response?
An increase in the fertility rate of a country's population will shift the labor supply curve to the right
a. True b. False Indicate whether the statement is true or false