If stock prices follow a random walk, it means
a. long periods of declining prices are followed by long periods of rising prices.
b. the greater the number of consecutive days of price declines, the greater the probability prices will increase the following day.
c. stock prices are unrelated to random events that shock the economy.
d. stock prices are just as likely to rise as to fall at any given time.
d
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An isoquant is a curve that shows all the combinations of two inputs that will produce the same level of output
Indicate whether the statement is true or false
When there is an externality in a market
A) the externality will move the market to an economically efficient equilibrium. B) the externality will cause the market price to be less than or greater than the equilibrium price. C) the government should use price controls to enable the market to reach equilibrium. D) government intervention may increase economic efficiency.