true or false: financial markets encourage the generation of information by entities that have comparative advantage in such research
true or false: financial markets encourage the generation of information by entities that have comparative advantage in such research
True or False and why.. Comparative advantage expands Adam Smith's concept on specialization.
2. A country can have a comparative advantage in the production of a good, even if it does not have an absolute advantage in the production of that good. a. True b. False
True or False? An advantage of debt financing is that it decreases financial leverage.
1. Which of the following is true? A. A nation can have a comparative advantage in the production of a good only if it also has an absolute advantage. B. A nation can have a comparative advantage in the production of every good, but not an absolute advantage. C. A nation cannot have an absolute advantage in the production of every good. D. A nation cannot have a comparative advantage in the production of every good. 2. The fictional country...
true or false: the efficient market hypothesie says that financial markets are efficient- they have minimum operational costs of running the market.
1) it is possible for one country to have a comparative advantage in the production of all products A) TRUE B) FALSE 2) the most recent data indicates households in the top fifth of the income distribution earns as much income as the bottom four fifths combined A) TRUE B) FALSE 3) in the united states most income comes from stocks and bonds A) TRUE B) FALSE 4) which country is the the United States' largest trading partner? A) CANDA...
1. Absolute advantage and comparative advantage A AaB Suppose you have the following information on the marginal product of labor in rice production and apparel production in Japan and Thailand: Marginal Product of Labor Thailand Rice (bushels per hour) Apparel (units per hour) Complete the following table by computing opportunity costs of each good in terms of units of another good for both countries: Japan Thailand Opportunity cost of rice (units of apparel per bushel) Opportunity cost of apparel (bushels...
Select all that is/are true or false about the financial markets. a. Financial markets bring the buyers and sellers of debt and equity together. b. Stocks trading on an organized exchange such as the NYSE are also referred to as listed securities c. Securities traded between two shareholders happen in the primary market. d. When a firm first sells shares to the public this is a primary market transaction. e. The OTC market has a central location and is...
1. True or False: Suppose there is a significant shock to global financial markets. As a result, there is a “flight to quality” – foreign investors flooded the US market with capital, investing in short-term government securities – T-bills3 primarily! This should lead to a DECREASE in US market interest rates. 2. True or False: The following argument is made as to the impact of baby boomers on financial markets. As the bulk of baby boomers approach retirement, there has...
For a person to have a comparative advantage in producing a product, he must be able to produce that product at a higher opportunity cost than his competitors. O True ○ False Click to select your answer. 132019 0 Type here to search End 8