The random walk theory implies that stock prices
a. go down, then up, and then down again.
b. follow systematic trends.
c. can be forecast accurately by experts who are knowledgeable about how the stock market works.
d. will change as the result of unexpected factors that are virtually impossible to forecast accurately.
D
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From the economic point of view, what does a professor who posts her syllabus on the Internet and a restaurant that posts its menu outside have in common?
A) They are attempting to exploit others. B) They are reducing competition. C) They are expanding the range of opportunities available to others. D) They are solely in it for the money.
Which of the following is a common mistake consumers commit when they make decisions?
A) They take into account nonmonetary opportunity costs but ignore monetary costs. B) They sometimes value fairness too much. C) They are overly pessimistic about their future behavior. D) They fail to ignore sunk costs.