Excess volatility refers to
A) the unwillingness of financial analysts to consistently recommend the same stocks.
B) the greater volatility of futures prices compared to the volatility of prices of the underlying assets.
C) the tendency for stocks with high rates of returns also to have quite variable returns.
D) the larger movements in market prices of stock than in their fundamental values.
D
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What are property rights?
A) the title to ownership of any physical asset B) the rights individuals or firms have to the exclusive use of their property, including the right to buy or sell it C) a legal document verifying ownership of intangible assets D) the right of the government to appropriate private assets for the good of society
Farming in poor countries is considered to be:
A. capital intensive. B. labor intensive. C. production intensive. D. cost intensive.
The slope of a budget line: a. is the negative of the price ratio, -PX/PY b. depends on income
c. depends on preferences. d. is positive.
Which of the following is not a result of the theory of land rent?
A. Capital invested on any plot of land must yield the same return as capital invested on any other plot of land. B. The difference between the costs of producing on any two pieces of land must equal the difference between their rents. C. Marginal land earns no rent. D. Productive land earns more rent than marginal land, which earns more rent than nonproductive land.