Stock prices rise when abnormal profit expectations rise

Indicate whether the statement is true or false


True

Economics

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As a person increases his or her caloric intake, the person's weight increases, ceteris paribus. The relationship between the person's caloric intake and the person's weight is an example of

A) unrelated variables. B) a positive relationshi

Economics

The managerial technique of markup pricing is consistent with the economic theory of profit maximization when the markup is positively related to the price elasticity of demand

Indicate whether the statement is true or false

Economics

Suppose you are the manager of Natural Oils, a firm that specializes in healthy skin oils. To make your oils, you purchase avocado pits from guacamole manufacturers. If the demand for guacamole increases, this will cause the production of avocado pits to ________ and the price of avocado pits to ________.

A) increase; fall B) decrease; fall C) increase; rise D) decrease; rise

Economics

The law of diminishing returns to labor implies that

a. capital is more productive than labor b. workers become less efficient once they have a secure job c. output increases at a decreasing rate with the employment of new workers d. employers pay workers a wage rate that is less than the workers' MRP e. capital is less productive than labor

Economics