Which type of stock should result in the best return according to the Efficient Markets Hypothesis?
A) a firm that is expected to be highly profitable in the future
B) a firm that is considered to be undervalued
C) a firm expected to earn little profit in the future
D) none of the above
D
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In the ________ increases in the supply of money will ________
A) long run; lead to lower prices B) short run; raise total demand and output C) long run; raise total demand and output D) short run; decrease total demand and output
Which of the following is FALSE regarding unions?
A) The American Federation of Labor (AFL), composed of craft unions, was formed in 1886 under the leadership of Samuel Gompers. B) For a period after World War I the government temporarily stopped protecting labor's right to organize. C) During the Great Depression, legislation was passed that made collective bargaining illegal. D) The AFL and the CIO merged in 1955.
Assume Brandon's benefit function for water is S(W) = ?W and he consumes water both in droughts, WD, or in the rainy season, WR. Assume his current consumption bundle is WD = 400 and WR = 100 and the probability of drought is 0.75. Brandon's risk premium is:
A. 250 units of water. B. 325 units of water. C. 17.5 units of water. D. 18.75 units of water.
Jason buys only music downloads and food with his weekly income. In response to a decrease in the price of downloads, he buys more downloads and less food. As a result, we would expect: a. the marginal utility of downloads to increase and the marginal utility of food to decrease. b. the marginal utility of both downloads and food to remain unchanged
c. the marginal utility of downloads to decrease and the marginal utility of food to increase. d. the marginal utility of food to become negative.