For this question, assume that there is perfect arbitrage in the stock market. Given this assumption, economists believe that
A) movements in stock prices can be easily predicted.
B) movements in stock prices are largely unpredictable.
C) most stocks will diverge from their fundamental value.
D) stocks will generally earn a lower rate of return than bonds.
E) the rate of return on stocks will be equal to the rate of return on bonds.
B
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Refer to Table 12-2. What is Margie's total revenue if she sells 250 pounds of apples?
A) $250 B) $500 C) $750 D) There is not enough information in the table to determine Margie's total revenue.
If a natural disaster destroys some of the capital stock, then the classical model predicts
a. labor demand, real wages, and output will fall. b. labor demand and real wages will rise, output will fall. c. the labor market remains unchanged but output falls. d. None of the above