The efficient market hypothesis states that:
A. markets currently contain all available information and correctly value instruments.
B. when buyers and sellers act in their own best interest markets will be efficient.
C. in order for markets to be efficient they need to be adequately regulated.
D. markets currently contain an efficient amount of information for them to clear.
A. markets currently contain all available information and correctly value instruments.
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The economy is in a recession. The government enacts a policy to increase purchases by $2 billion. The MPC is 0.8. What would be the full increase in real GDP from the change in government purchases at a given price level?
A. $16 billion B. $10 billion C. $6 billion D. $8 billion
Refer to Scenario 10.7. How many ink pads will be produced to maximize profit?
A) 50 B) 250 C) 500 D) 800 E) none of the above
Marginal utility can be measured by the change in:
a. total utility / the change in quantity. b. income / the change in utility. c. quantity / the change in income. d. price / the change in utility. e. income / the change in price.
Which of the following was the average yearly increase in U.S. labor productivity growth between the 1870s and the early years of the 21st century?
a. About 1 percent b. About 2 percent c. About 5 percent d. About 10 percent e. Between 0 and 1 percent