Suppose you are considering buying stock in the stock market, and your objective is to maximize your net worth. Furthermore, your study of the market reveals that the economy will be slowing down over the next several months
Under these conditions, it would be best to purchase stock in companies that produce
A) normal goods. B) luxury goods.
C) price elastic goods. D) inferior goods.
D
You might also like to view...
A negative externality can be internalized by
A. persuasion. B. the imposition of a tax. C. the assignment of property rights. D. a voluntary agreement. E. all of the above
The Fed usually sets a higher reserve requirement for savings accounts than for checking accounts
a. True b. False Indicate whether the statement is true or false
Over the past two decades, the rate of growth of public education spending has been
a. considerably higher than the rate of growth of GDP b. slightly higher than the rate of growth of GDP c. the same as the rate of growth of GDP d. considerably lower than the rate of growth of GDP e. slightly lower than the rate of growth of GDP
Market power is defined as:
(a) The ability of a perfectly competitive firm to charge any price it wants. (b) The strength of the equilibrium in the market. (c) The ability of a seller to affect the market price of a good or service. (d) All of the above.