What are the costs of capital mobility?

Is the stock of a corporation with an excellent earnings record likely to be a better buy than the stock of a corporation doing very badly?

A) No, because the price of each stock will reflect differing situations. B) Only if their different earnings records have persisted for several years. C) Yes, because stocks with large dividend returns to owners are always good buys. D) Yes, because the future is more likely to resemble the past than to differ from it in any systematic way.

Producer groups tend to lobby for

A) price floors. B) price ceilings. C) quantity quotas. D) taxes.