The random walk theory implies that stock prices
a. go down, then up, and then down again.
b. follow systematic trends.
c. can be forecast accurately by experts who are knowledgeable about how the stock market works.
d. will change as the result of unexpected factors that are virtually impossible to forecast accurately.
D
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How do the wages in the United States compare to those in northern Europe?
A. U.S. wage rates are higher than those of all northern European nations. B. Northern Europe’s average wage rates are higher. C. U.S. wage rates are higher than those in Germany and the Netherlands. D. They are similar.
With respect to U.S. Treasury bills,
A) the bid price is always greater than the asked price. B) the asked price is always greater than the bid price. C) the bid price is only greater than the asked price if investors expect interest rates to decline in the future. D) the asked price is only greater than the bid price if investors expect interest rates to decline in the future.
The benefit of a subsidy accrues mostly to consumers
A) in every instance. B) if Ed/Es is large. C) if Ed/Es is small. D) if Ed and Es are equal. E) in no instance.
Total costs:
A. increases as the firm increases output. B. are fixed costs plus variable costs. C. include explicit and implicit costs. D. All of these are true.