The stock market bubble of the late 1990s and early 2000s:
A. saw internet and computer technology companies over-invest.
B. was an example that not all bubbles burst.
C. was a good example of the theory of efficient markets.
D. saw an efficient allocation of resources toward the high-growth computer/internet sector.
Answer: A
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A capital gain occurs when the
A) coupon rate increases. B) current yield increases. C) price of an asset increases. D) yield to maturity increases.
If the number of employed workers in an economy is 8 million, the number of potential workers in the economy is 12 million, and the number of adults not in the labor force is 1 million, the number of unemployed people in the economy will equal:
A) 3 million. B) 5 million. C) 1 million. D) 7 million.
A characteristic common in both oligopoly and monopolistic competition is:
A) a small number of firms compete in the market. B) natural or legal barriers prevent the entry of new firms into the market. C) each firm faces a downward-sloping demand curve. D) the firms in the market are interdependent. E) each firm has a large share of the market.
Countercyclical fiscal policy is viewed by most economists
a. as the perfect instrument for preventing boom and bust economies b. as a useful but imperfect instrument for reacting to boom and bust economies c. having no impact in the short run or long run. d. doing more damage than good in both the short run and long run. e. as having an impact only in the long run.