Suppose that over the next few years, the demand for dancing to country and western music decreases. Hence, at country and western dance clubs, the equilibrium price of admission ________, and the equilibrium quantity of dancing ________

Marginal cost curves slope

A) upward because of increasing opportunity cost. B) upward because of decreasing opportunity cost. C) downward because of increasing opportunity cost. D) downward because of decreasing opportunity cost.

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.