What is the stock market’s role in achieving efficient use of resources?
What will be an ideal response?
Investors channel their money to companies expected to earn high profits. Since profits increase with efficiency, the market rewards those firms that are seen to be efficient. However, some argue that individuals overemphasize short-term growth at the expense of long-term growth and that stock prices are gambling rather than a reward to efficiency.
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Nontoll roads can be either public goods or common resources, depending upon the degree of congestion
a. True b. False Indicate whether the statement is true or false
According to OSHA standards, the air in the building that a person works in is unsafe. The type of regulation that OSHA engages in is known as
A. command and control. B. social regulation. C. the market share test. D. economic regulation.