The efficient markets hypothesis implies that prices in the stock market
A) follow a definite pattern.
B) are more likely to go up than down.
C) always undervalue the true assets of a corporation.
D) are unpredictable.
D
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A monopoly earns the most profit by charging a price where demand is inelastic
a. True b. False Indicate whether the statement is true or false
When a U.S. citizen buys $500 of Chinese-made parts for a motorcycle,
a. U.S. consumption falls by $500, U.S. net exports decline by $500, and U.S. GDP declines by $1000. b. U.S. consumption does not change, U.S. net exports decline by $500, and U.S. GDP declines by $500. c. U.S. consumption increases by $500, U.S. net exports remain the same, and U.S. GDP increases by $500. d. U.S. consumption increases by $500, U.S. net exports decline by $500, and U.S. GDP remains the same.
A political candidate running in a two-person race is likely to occupy
A) an extreme end of the political spectrum and hope that his or her opponent will gravitate toward the middle so that he or she can then claim that his or her opponent has flip-flopped. B) the middle of the political spectrum and label his or her opponent as an extremist (either liberal or conservative). C) a position somewhere between the middle of the political spectrum and an extreme end so that he or she can move either way shortly before the election. D) one extreme end of the political spectrum early in the race and the other extreme end near the end of the race.
Other things equal, the combination of a ________ saving rate and a ________ real interest rate will result in the largest accumulation of wealth over time.
A. high; high B. high; low C. low; high D. high; zero