If the P/E ratio is equal to 50, it implies that investors in the stock are willing to pay:
a. $25 for every $2 of the earnings that the company generates during a period.
b. $100 for every $1 of the earnings that the company generates during a period.
c. $500 for every $1 of the earnings that the company generates during a period.
d. $50 for every $1 of the earnings that the company generates during a period.
e. $5 for every $1 of the earnings that the company generates during a period.
d
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One undesirable effect of social regulation is that it
A. destroys incentives for firms to engage in marginal cost pricing. B. raises prices of goods to consumers, while lowering prices to business and special interest groups. C. reduces the effectiveness of economic regulation. D. affects smaller firms disproportionately, creating anticompetitive effects.
How does the text distinguish between government and the market?
A) The government is the place around the capital city; the market is everywhere else. B) The government is populated with publicly-spirited people; the market is populated with selfish people. C) The government is based on cooperation; the market is based on competition. D) In all of the above ways. E) In none of the above ways.
A Stronger U.S. dollar in world exchange markets means that
A. a dollar buys fewer units of foreign currency than it could before. B. foreigners buy the same amount of U.S. dollars as they have. C. a dollar buys the same amount of foreign currency than it could before, with gold backing up the value of the dollar. D. a dollar buys more units of foreign currency than it could before.
Draw and explain a Lorenz curve.
What will be an ideal response?