A pharmaceutical company unexpectedly announces that it just developed an important new drug. This news should
a. raise the price of the corporation's stock; if it does not the stock is overvalued.
b. raise the price of the corporation's stock; if it does not the stock is undervalued.
c. reduce the price of the corporation's stock; if it does not the stock is overvalued.
d. reduce the price of the corporation's stock; if it does not the stock is undervalued.
b
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Refer to the scenario above. Which of the following statements will hold true if the starting bid is $300?
A) Everyone except Bob will take part in the auction. B) Everyone will take part in the auction. C) Only Bob will take part in the auction. D) Everyone except Joe will take part in the auction.
As the price level falls, the quantity of real wealth ________ and the aggregate quantity of real GDP demanded ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Which is distributed more unequally, income or wealth? Why? Which is the better measure?
What will be an ideal response?
All else equal, anything that increases the transportation costs ________ the number of consumers shopping at ________.
A) increases; larger, less expensive stores B) increases; local, more expensive stores C) does not change; local, more expensive stores D) does not change; larger, less expensive stores