Companies whose stocks increase the most during a stock market bubble will:
A. find it difficult to put their capital to profitable use after the bubble bursts.
B. tend to under-invest.
C. usually rebound faster once the bubble bursts.
D. have a difficult time raising investment capital.
Answer: A
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The idea of continuous economic growth as a "perpetual motion machine" best reflects the prediction of which growth theory?
A) no growth theory B) the classical growth theory C) the traditional growth theory D) the Keynesian growth theory E) the new growth theory
People make mistakes in allocating their time
a. because they always act irrationally b. despite always having expectations fulfilled c. only when leisure is a normal good d. because acquiring information is costly e. more often when the cost of making a mistake is high
Which of the following would cause a credit to the U.S. balance of payments?
a. a group of U.S. citizens goes to New Zealand for a vacation. b. General Motors pays a dividend to a citizen of Brazil. c. Lloyd’s of London makes an insurance payment to a U.S. resident. d. Russia cancels its purchases of U.S. wheat and buys wheat from Argentina.
There are fewer farmers in the United States today than 200 years ago because of
a. improvements in farm technology. b. increased government regulations in farming. c. an elastic demand for food. d. environmental programs designed to reduce soil erosion.