If the prices of financial assets follow a random walk, then
A) they should be easy to forecast, provided market participants have rational expectations.
B) they should be easy to forecast, provided market participants have adaptive expectations.
C) the change in price from one trading period to the next is not predictable.
D) major traders in the market must not be making use of all available information about the assets.
C
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Richard Easterlin (1968, 1987) maintains that the 20th century's pattern of births was
(a) affected primarily by Real Gross National Product (Real GNP). (b) negatively affected by the U.S. population's materialistic desires and positively affected by its income. (c) explained by waves of discrimination. (d) explained solely by the wars.
An example of moral hazard is
a. workers shirking when the boss is not looking b. health care insured workers dieting and exercising c. drivers of safer cars turning their phones off before driving d. borrowers investing their loan proceeds exactly as the bank requires
The statement that there is an inverse relationship between x and y means that
a. x causes y b. y causes x c. x and y move in opposite directions d. either y causes x or x causes y e. there is no causal relationship between x and y
When a national security crisis forces the government to draft workers, this often results in price increases because the supply curves of most goods shift to the left. The people who suffer the price-increase consequences mostly are
a. those who are drafted b. farm goods suppliers because they have less to supply c. consumers of farm goods because farm goods are basic goods d. the rich because they can afford to pay the higher prices, but they pay substantially more e. the poor because they are priced out of the markets