According to the text discussion of efficient capital markets, which of the following would a well-trained economist recognize as logical and expected?
A. Experienced investors pay handsome sums to get investment advice from expert advisors
B. Monkeys throwing darts at a financial page can hit stocks that perform as well as stocks picked by financial experts
C. The best managed companies usually earn higher returns than companies rated lower on the list of well managed companies
D. Only expert investors should invest in the stock market
Answer: B
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In an IS-LM model with an upward-sloping LM curve and a downward-sloping IS, how does the expenditure multiplier compare to [1/(1-b)]?
A) It is equal to it. B) It is greater. C) It is smaller. D) Cannot be answered with the information given.
Incentives matter and different groups of producers, consumers and politicians will support those policies that promise to advance those projects most advantageous to them. Which statement about opposition to or support for U.S
tariff policy during the antebellum period is correct? (a) "Producers in the South objected to tariffs placed on imported goods. They needed them at relatively low prices for their own production." (b) Plantation owners supported a high tariff as protection against cheap cotton imports. (c) Politicians wanted to protect jobs abroad as well as in the U.S. Therefore, they did not support U.S. tariff policies. (d) All of the above are correct.
As a price searcher, a monopoly firm
A) must only determine the price it charges. B) must determine its optimal price-output combination. C) must determine its output level and then accept the market price for its product. D) must determine the prices it pays for its inputs and accept the market price for its output.
The "Robin Hood" tax policy, which taxes the rich to give to the poor, is best described by economists as:
a. a proportional tax policy. b. a regressive tax policy. c. a poll tax policy. d. a progressive tax policy. e. a capital tax policy.