The efficient markets hypothesis implies that stock investments should have the same expected return after adjusting for
A) risk.
B) information costs.
C) liquidity.
D) all of the above.
D
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If property rights are poorly defined
a. no one can really "own" property b. time and energy are wasted in disputes about ownership c. most exchanges are involuntary exchanges d. consumer surplus cannot exist e. producer surplus cannot exist
Public choice analysis indicates that politicians will find
a. budget deficits more attractive than budget surpluses. b. budget surpluses more attractive than budget deficits. c. budget deficits attractive during an economic boom, but surpluses attractive during a recession. d. tax increases more attractive than increases in government spending.
When considering marginal revenue for the monopolist, which of the following is FALSE?
A) To sell more of a particular product, given the industry demand curve, the monopoly firm must lower the price. B) An essential point for the monopolist, marginal revenue is always less than price. C) Marginal revenue is always less than price because price must be reduced on all units to sell more. D) The more the monopolist wants to sell, the higher the price it has to charge in order to make more profits.
Which of the following statements is correct?
A. Business cycles are caused by unanticipated inflation. B. Business cycles are caused by seasonal unemployment changes. C. The depth and the length of all business cycles are identical. D. The depth and the length of all business cycles are different.