According to the efficient markets hypothesis,
A) common stock prices should be constant.
B) the price of a corporation's stock is likely to fluctuate substantially in response to news about changes in the company's short-term prospects.
C) the price of a corporation's stock will fluctuate significantly only in response to news about changes in the company's long-term prospects.
D) price fluctuations in common stock are a response to fads and are only infrequently the result of changes in the expected profitability of the companies involved.
C
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Suppose that the price of labor, the only variable input needed to produce cotton, increases from $100 day to $120 day. The effect on costs will be
a. a parallel shift in the total cost curve. b. a parallel shift in the fixed cost curve. c. a parallel shift in the marginal cost curve. d. a shift in total cost by different amounts for different quantities.
Moving along an elastic portion of a demand curve, a small percentage change in price leads to a larger percentage change in quantity demanded
a. True b. False Indicate whether the statement is true or false
The large budget deficits of 2003 and 2006 meant that the federal government was borrowing upwards of $1.7 trillion over the four-year period. If that borrowing limits the ability of the private sector to get financial capital for its purposes, economists would call this
A. forcing aside. B. forcing in. C. crowding in. D. crowding out.
How does inclusion of the current revenues and expenditures of the Social Security trust fund into the budget calculation affect the reported budget deficit of the federal government?
A. It increases the reported deficit. B. It reduces the reported deficit. C. It exerts no effect on the reported deficit. D. It increases the deficit during an economic boom but reduces it during a recession.