Equity and property price bubbles are commonly associated with periods when:
A. financial asset prices reflect the book value of companies.
B. financial asset prices are well above what seems to be a reasonable present value estimate of earnings.
C. the earnings that companies report are overstated.
D. financial assets are undervalued.
Answer: B
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All of the following questions or statements regarding medical school are positive except
A) Medical students who enter specialized fields make a larger contribution to society than do student who enter primary care. B) What role does tuition play in a student's decision about whether to attend medical school? C) Have tuition increases had a large effect or a small effect on the number of applications to medical school? D) How do changes in expected future incomes affect the decisions of medical students about which specialty to choose?
The economist John Kenneth Galbraith (1979) lists several major sources of weakness in the economy that laid the groundwork for the collapse of the 1930s. These sources include all of the following except
(a) A weak banking structure (b) Ignorance of the economy's problems by the nation's leaders (c) An overgrown federal bureaucracy with extensive regulation of the private economy (d) An increasingly unequal distribution of income
A beneficial supply shock such as a breakthrough in technology _____
Fill in the blank(s) with the appropriate word(s).
If Mrs. T.F. Baker buys 29 pairs of false eye lashes at the local drug store,
A. she is definitely enjoying a consumer surplus. B. she may or may not be enjoying a consumer surplus. C. she is definitely not enjoying a consumer surplus.