If a corporation announces that it expects quarterly earnings to increase by 25% and it actually sees an increase of 22%,
what should happen to the price of the corporation's stock if the efficient markets hypothesis holds, everything else held constant?
The stock's price should fall. The price had adjusted based on the statement of expected earnings. When the actual number turned out to be lower than expected, the stock price changes to reflect the additional information.
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Incomes policies reject wage-price controls and guidelines
a. True b. False Indicate whether the statement is true or false
If the United States could produce 1/2 ton of potatoes or 1 ton of wheat per worker per year, while Ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year, the country with the comparative advantage in producing wheat is ____ and the country with the absolute advantage in producing potatoes is ____
a. the United States; the United States b. the United States; Ireland c. Ireland; the United States d. Ireland; Ireland