Taxes are generally classified into these three categories:

Which of the following is an important lesson that can be drawn from the experience of the Great Depression?

a. Frequent shifts in monetary policy can help smooth out unstable economic conditions during a recession. b. Trade restrictions can "save jobs" and expand total employment during an economic downturn. c. The good intentions of political decision-makers are no substitute for sound policy. d. The federal government should always balance its budget during a recession.

According to the efficient market hypothesis, which of the following statements is not correct?

a. Stock market prices tend to rise today if they rose yesterday. b. As judged by the typical person in the market, all stocks are fairly valued all the time. c. At the market price, the number of shares being offered for sale matches the number of shares people want to buy. d. All of the above statements are incorrect.