Which of the following provides the strongest argument for young people making regular payments into a retirement program that invests these funds in a diverse set of stocks?
a. The prices of stocks tend to fluctuate more than the prices of bonds.
b. Over short periods of time, variation in the real rate of return of stocks is greater than bonds.
c. When held over lengthy periods like 30 or 40 years, historically, the rate of return on stocks has been both higher and less variable than that of bonds.
d. Lower interest rates will lead to higher bond prices.
C
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An oligopoly is characterized by
a. few firms, which have control over market price b. many firms and some barriers to entry c. a large number of firms and no barriers to entry d. a single firm and no barriers to entry e. a single firm and significant barriers to entry
An increase in the cost of acquiring human capital will shift the labor supply curve to the left; eventually, this will tend to decrease the equilibrium wage rate
a. True b. False
Assume a country produces only wine and cups. Both wine and cup production use land and labor as their only inputs. Wine production is relatively land-intensive while cup production is relatively labor-intensive. According to the Rybczynski theorem, a significant rise in immigration is most likely to lead to
A. an increase in wine production by a greater proportion than the increase in the production of cups. B. an increase in the production of cups by a greater proportion than the increase in the size of the labor force due to immigration. C. an increase in the production of both wine and cups. D. an increase in wine production by a greater proportion than the increase in the size of the labor force due to immigration.
Stock prices are:
A. unrelated to the value of the company issuing the stock. B. determined by market transactions. C. set by the company issuing the stock. D. set by the central bank.