Suppose the Johnson Corporation releases an earnings report that beats the market's expectations. What does the efficient markets hypothesis predict will happen to Johnson's stock price
The efficient markets hypothesis predicts better-than-expected news will raise a company's stock price. Therefore, we would expect Johnson's stock price to rise.
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In a perfectly competitive market, a(n) ________ occurs because ________
A) efficient outcome; total surplus is maximized B) deadweight loss; firms minimize average minimum cost C) efficient outcome; the fair rules condition is met D) deadweight loss; firms must be price takers E) deadweight loss; total surplus is minimized
When a country has a large amount of dead capital
A) there is too much political freedom. B) there is a large amount of economic growth. C) large amounts of capital will be inefficiently employed. D) a country's exports increase.
If Mary has an absolute advantage over Bill in performing each of two tasks, then
a. Mary must have a comparative advantage in both tasks b. Mary cannot benefit by specializing in one and trading with Bill for the other c. Mary should specialize in both tasks d. Mary cannot have a comparative advantage in either task e. Mary should specialize in the one in which she has a comparative advantage
If a demand shock causes an economy to operate at a point above potential GDP, then
a. the aggregate supply curve will shift to return the economy to the original point of equilibrium b. the economy will correct itself through rising wages and prices c. this short-run equilibrium point will become the new long-run equilibrium GDP d. the economy will correct itself through falling wage rates and prices e. the shock is said to be a negative demand shock