When institutional money managers use their computers to decide on large sales or purchases in the stock market, they are employing
a. the herd instinct.
b. the bandwagon effect.
c. program trading.
d. stock watering.
c
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If a firm is a price taker, then the demand curve for the firm's product is:
A. perfectly elastic. B. unit elastic. C. equal to the total revenue curve. D. perfectly inelastic.
The likelihood that individuals who seek to borrow money may use the funds for unworthy, high-risk projects is
A. asymmetric information B. adverse selection C. moral hazard D. financial intermediation
When you see a preview of a coming movie at the movie theater, this is
A. direct market advertising. B. persuasive advertising. C. indirect market advertising. D. informational advertising.
If the price of gasoline increases from $2.50 per gallon to $3
00 per gallon and the quantity demanded goes down from 120 million gallons per week to 115 million gallons per week, the absolute value of price elasticity of demand in that price range is approximately A) 0.23. B) 4.35. C) 0.93. D) 2.34.