If the stock price of a company is higher than the discounted value of its future earnings,
a. Buy the stock only if the company has a sustained competitive advantage
b. Don't buy the stock, even if the company has a sustained competitive advantage
c. Always buy the stock
d. None of the above
b
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If U.S. consumers increase their demand for foreign products and foreign travel, the U.S. dollar would tend to depreciate as more dollars are supplied to foreign exchange markets
Indicate whether the statement is true or false
We say there is productive inefficiency in saving lives if
a. there is some way to save more lives b. there is some way to save more lives without sacrificing any other goods or services c. all resources are devoted to saving lives d. no resources are devoted to saving lives e. anyone dies before reaching his or her life expectancy
The view that decision-maker expectations are based on actual outcomes observed during the recent past is called the
a. rational expectations hypothesis. b. adaptive expectations hypothesis. c. permanent income theory. d. recognition lag.
If we use the shortrun (specificfactors) model to model FDI movement from one nation to another, then wages in the recipient nation:
a. decline absolutely. b. rise as a result of an increase in the MP of labor. c. are not affected. d. decline relatively, as capital competes with labor but not absolutely.