The phrase, Google stock soared Friday, continuing Wall Street's love affair with the company, implies that Google's earnings were much more than it was expected in that quarter.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2Carla had received very low annual return from her investment portfolio comprising of stocks of five companies for two years. Her decision to continue holding the same portfolio of assets will be an example of:
a. bounded rationality.
b. selfishness.
c. altruism.
d. systematically missed opportunities.
QUESTION 3Suppose that apples and bananas both cost the same, but the marginal utility of bananas is twice as high as that for apples. This implies the consumer should purchase more apples and fewer bananas in order to maximize utility.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4Assume that you know the following cost information about Fred's widget company: Its fixed cost is 9, and its total variable cost is 6 for 1 unit; 11 for 2; 15 for 3; 20 for 4; and 26 for 5 . Given the above information,
a. the marginal cost of the third unit is greater than the marginal cost of the first unit.
b. the marginal cost of the fourth unit is the same as the marginal cost of the second unit.
c. the average variable cost of four units is the same as for three units.
d. both (b) and (c) are correct.
QUESTION 5The equity market is said to be an efficient market because it is difficult for an investor to continually earn above-normal profits.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6Which of the following abilities should an economic model possess?
a. It should lower the time cost of information collection.
b. It should help individuals to discern the information that matters for a problem.
c. It should be able to process both untrue or impossible to verify information as well as correct information in the data set.
d. It should suggest accurate solutions for a problem.
QUESTION 7If a good is free, a rational consumer will continue to consume that good, irrespective of its marginal utility.
a. True
b. False
Indicate whether the statement is true or false
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