If the efficient markets hypothesis is correct, then
a. the number of shares of stock offered for sale exceeds the number of shares of stock that people want to buy.
b. the stock market is informationally efficient.
c. stock prices never follow a random walk.
d. All of the above are correct.
b
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The dollar price of a good relative to the average dollar price of all other goods and services is the good's:
A. nominal price B. equilibrium price C. market price D. real price
Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. What of the following could result in a movement to point b?
A) an increase in the price of bottled water B) a decrease in the price of bottled water C) an increase in the opportunity cost of soft drinks D) a decrease in the relative price of a soft drink
An import quota is:
A. a tax on the good or services that are imported. B. a limit on the amount of a particular good that can be exported. C. a limit on the amount of a particular good that can be imported. D. None of these is true.
If a perfectly competitive firm receives a price below its shutdown point, it should stay open
a. True b. False Indicate whether the statement is true or false