"My broker studies the stock market and the management of specific firms. When he advises me to buy, I listen because he is an expert." Analyze this view
Current stock prices already reflect the best known information about the future state of corporate earnings, the health of the economy, and other factors that influence stock prices. Therefore, the future direction of stock prices will be driven by surprise occurrences, things that people do not currently anticipate. By their very nature, these factors are unpredictable. If they were predictable, they would already be reflected in current stock prices. Thus, there is no reason to believe that your broker or anyone else will be able to predict the future direction of stock prices with any degree of accuracy.
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All economically efficient production plans are technologically efficient.
Answer the following statement true (T) or false (F)
Refer to the table below. Suppose the profit for each unit of paper product is $2 and the profit for each unit of lumber is $5 and Big Oaks is producing the profit-maximizing quantity of lumber and paper products. If the profit from each unit of lumber increases from $5 to $6 and the profit for each unit of paper products does not change, to maximize profit, Big Oaks should produce a ________
proportion of lumber and produce ________ units of paper products and lumber.
Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amount of paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable proportions. The above table summarizes Big Oaks production possibilities from each harvested tree.
A) smaller; more
B) smaller; less
C) greater; less
D) greater; more
A monopolistically competitive firm
a. tries to differentiate its product from competitors' products. b. faces a perfectly elastic demand curve for its product. c. has more monopoly power in the long run than does a perfectly competitive firm. d. is always a retail establishment.
Since 1948, the labor force participation rate for adult men has ________ and for adult women has ________
A) increased; increased B) increased; decreased C) decreased; increased D) decreased; decreased