When collecting data to conduct research, if the sample used is not random, ________ occurs.
A. regression discontinuity
B. selection bias
C. survivor bias
D. difference-in-differences
Answer: B
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Suppose stock A sells for $30 per share and pays dividends of $1 per share per year. Stock B sells for $40 per share and pays dividends of $2 per share per year. Through the process of arbitrage, we would expect the price of:
A. stock A to fall and/or the price of stock B to rise. B. stock A to rise and/or the price of stock B to fall. C. both stocks to rise or fall together. D. neither stock to change.
Unemployment compensation payments:
A. rise during a recession and thus reduce the severity of the recession. B. rise during a recession and thus increase the severity of the recession. C. rise during inflationary episodes and thus reduce the severity of the inflation. D. fall during a recession and thus increase the severity of the recession.