It implies that prices reflect all available information. Communist nations have a total command economy. 1 Speculative trading on the stock market can assist by smoothing price fluctuations and ensuring shares are readily marketable. If economic profits are earned then the price will fall over time. Diversification reduces a portfolio's exposure to market risk. Which of the following statements about price and marginal cost in competitive and monopolized markets is true ? Indicate whether each of the following statements is true or false, and explain why. Examples of monopolistic competition: 1) hotel and restaurant businesses 2) consumer services like hair dressers, spa, etc 3) pubs and bars © copyright 2003-2021 Study.com. Which of the following is true of a perfectly competitive market? IV. Diversification increases the standard deviation of the portfolio return. B Statement 1: True Statement 2: True Answer: Product category sales decrease at this stage. The security market line (SML) displays the relationship expected return on investment and standard deviation of return. For this to hold true - (a) The asset (or assets) which is the source of the inefficiency has to be traded. a) Holding everything constant except for the variables you are interested in examining. a. I. B) Equities usually make periodic payments called dividends and are considered to … It is easily transacted in public markets all over the world. Which of the following statements concerning the effects of fluctuating exchange rates on companies competing in foreign markets is true? Which of the following statements is true? Which of the following statements are true? Private placement occurs when a firm sells unregistered securities directly to investors such as insurance companies, commercial banks, or wealthy individuals. Earn Transferable Credit & Get your Degree, Get access to this video and our entire Q&A library. A bank’s assets are its uses of funds. 80) Which of the following statements about financial markets and securities are true? B. C. D. The black market appears in every nation. (1) The market inefficiency should provide the basis for a scheme to beat the market and earn excess returns. answer! Distinguish between the types of financial... Morgan Inc is a financial planning service. Which of the following statements is true about global marketing? b) Land, labor, or capital is bought and sold. Market price is the same thing as equilibrium price. Which of the following statements is NOT true? II. Which of the following statement(s) are TRUE? b) As a corporation gets a share of the broker's commission, a corporation acquires new funds whenever the securities are sold. Customer relationships for business products tend to be short-term and transactions-based. a) The most a consumer is willing to exchange to get an item. II. A You need a website to show up in search results . Become a Study.com member to unlock this A bank’s assets are its sources of funds. c) Because of their short terms to maturity, the prices of money market instruments tend not to fluctuate wildly. A) All securities in the market portfolio are held in proportion to their market values B) It includes all assets of the universe C) It is the tangency point between the capital market line and the indifference curve D) It lies on the efficient frontier The correct choice is a) Most common stocks are traded over-the-counter, although the largest corporations usually have their shares traded at... Our experts can answer your tough homework and study questions. III. It implies perfect forecasting ability b. A bank’s liabilities are its uses of funds. a) The use of market prices and sales to determine resource allocation. The securities market is a wide financial market that sells a wide range of products which are not limited to securities, bonds, ETFs, and money markets. c. Statements I, II and III are true. c.Markets by definition involve the exchange of money for goods and services. a.Markets are forums in which parties exchange goods and services at a "price," where the latter can be flexibly construed. Market participants act as if guided by an "invisible hand" to produce outcomes that promote general economic well-being. Which of the following statements about diversification are true? Only (b) ... Banks face the problem of _____ in loan markets because bad credit risks are the ones most likely to … (b) The transactions costs of executing the scheme have to be smaller than the expected profits from the scheme. Annual reports _____. a) On average, the services sectors produce 45% more revenue per capita than manufacturing and other sectors. Each of the following is a TRUE statement except: A. In the United States, price ceilings on human organs have caused an increase in demand. Sciences, Culinary Arts and Personal a) Markets necessarily have a physical location. Within the U.S. retail goods and services market, personal consumption of ________ accounts for the largest share. A Statement 1: True Statement 2: False. Which of the following statements are true if the efficient market hypothesis holds? In the United States, market shortages of human organs are the result of price ceilings. Share Tweet Share Pin Email Which of the following statements is true when marketing your business online? In long-run equilibrium, every firm in a perfectly competitive industry earns zero profit. Create your account. Statements consisting only of original research should be removed. (a) With a large enough computer, central planners could guide production more efficiently than markets (b) Market participants act as if guided by an invisible hand to produce outcomes that maximize social welfare C You’ll be seen by the same volume of customers whether you use search advertising or not . No nation has a pure market economy. Services, Financial Statement Presentation of Securities & Investments, Working Scholars® Bringing Tuition-Free College to the Community. Perfect […] 3. a. Which of the following statements is true when marketing your business online? Which of the following statements about dietary supplements is TRUE? If a security plots below the SML, it is offering too little return to justify its risk. Amixed market is the world's most common economic system. All of the following statements about Amazon.com are true except: Amazon has achieved success by focusing on its primary mission: selling books at highly competitive prices. Distribution channels for business products are significantly longer than those for consumer products. Which of the following statements is true of internal recruiting? _____ is not a true statement regarding the market portfolio. According to the law of demand, a demand curve. c. Federal law forbids pharmacies from advertising prescription drug prices. About half of all corporate debt is sold through the private placement market. All rights reserved. b. Diversification reduces a portfolio's exposure to firm-specific risk. In competitive markets, price equals marginal cost, in monopolized markets price exceeds marginal cost. Which of the following statements about financial markets and securities are true? 1 Answer to Which of the following statements is true about a market economy? Thus, if price falls, none of these firms will be able to survive. The Standard defines fair value on the basis of an 'exit price' notion and uses a 'fair value hierarchy', which results in a market-based, rather than entity-specific, measurement. b.Your current economics course, the next election, and the dating scene can all be seen as markets. Which of the following statements regarding the nature of the business market is true? Benevolence, a charity organization, wants to hire welfare … Demand" is a statement of actual purchases. 66) Lansdale Semiconductor is considered as the "last iceman" manufacturing the 8080 computer chip. 1. asked Sep 14, 2015 in Business by Dark5. b) Allowing the sale of kidneys at a price greater than zero would likely increase the number of available kidneys. B You’ll reach a similar client base to the one you have in the real world . a. it implies that future events can be forecast with perfect accuracy. P10.1 Market Structure Concepts. Diversification reduces the probability of making extremely high returns. Which of the following statements is true of an executive search firm? Personal selling plays a larger role in business products markets than in consumer markets. Use the following information to answer the next three (3) questions. Measurement of advertising effectiveness is extremely important. Taxes help prices communicate costs and benefits to producers and consumers. a) Most common stocks are traded over-the-counter, although the largest corporations usually have their shares traded at organized stock exchanges, such as the New York Stock Exchange. a. African Americans are on average older than all other ethnic groups. Question 1. (2) There should be profit maximizing investors who Which of the following statements is not true? I. B. d. All of the above b) Examples of the so-called 'invisibles' include infra-structural services, healthcare, education, recreation and administrative services. b. 2. IFRS 13 applies to IFRSs that require or permit fair value measurements or disclosures and provides a single IFRS framework for measuring fair value and requires disclosures about fair value measurement. A. Fluctuating exchange rates do not pose significant risks to a company's competitiveness in foreign markets. a. are required to be... Dim Corporation purchased 1,000 shares of Witt... TECEP Introduction to Entrepreneurship: Study Guide & Test Prep, TECEP Principles of Financial Accounting: Study Guide & Test Prep, Psychology 107: Life Span Developmental Psychology, SAT Subject Test US History: Practice and Study Guide, SAT Subject Test World History: Practice and Study Guide, Geography 101: Human & Cultural Geography, Sociology 103: Foundations of Gerontology, Criminal Justice 101: Intro to Criminal Justice, Political Science 101: Intro to Political Science, Biological and Biomedical c. In long-run equilibrium P = MR = SRMC = SRATC = LRAC. Statements I and III are true. Which of the following statements is true about the trends prevalent among various ethnicities in the ethnic markets? Answer: growth markets: 65) Which of the following statements is true about the decline stage of the product life cycle? d. Statements II and III are true. A factor market is any place or process where. All other trademarks and copyrights are the property of their respective owners. B. Which of the following statements is true about a market economy? Pro forma balance sheet Peabody & Peabody has 2015... 1. In the context of designing a training and development program for an organization, which of the following is the next step after conducting a needs analysis? Q16. Which of the following statements is true? https://quizlet.com/143141853/macroeconomics-chapter-3-quiz-flash-cards c, It implies that security prices change for no discernible reason. Which of the following statements about markets is not true? Question 30 1.87 pts Which of the following statements is true regarding discrimination in labor markets? A) Marketing practices must vary between different market segments. 2 A key role of the stock market is to determine a fair price for the assets traded. The true statement about profits in a monopolistically competitive market is: B.Many firms will earn profit in the short term, but they must constantly innovate and compete to earn profits in the long term. Select one: a. e. Statement I is true. b. b. A. Which of the following statement(s) is true if the efficient market hypothesis holds? A market in which final goods and services are exchanged is a. d) The most desired good or service given up when something is obtained. If economic profits are earned then more firms will enter the market over time. B) Customers and markets across regions are considered similar. Optimal market outcomes are the same as perfect market outcomes. Which of the following statements about financial markets and securities are true? C) Transferring irrelevant experience between markets may be beneficial. 4. A. asked Mar 31, 2017 in Health & Biomechanics by HoshGosh A) The FDA evaluates the safety and effectiveness of dietary supplements before they can be sold. a) The amount by which the quantity demanded exceeds the quantity supplied at a given price. A) A bond is a debt security that promises to make payments for a specified period of time. b. In The Economy Tomorrow analysis in the text stated that thousands of people were waiting for a kidney transplant. a. A perfectly competitive constant cost industry is described by the following demand and supply curves: Market Demand: P = 50 – Q. Advertising is a period cost and a plant manager’s salary is a period cost. d. It … ( March 2018 ) ( Learn how and when to remove this template message ) The whole of neoclassical equilibrium analysis implies that Say's law in the first place functioned to bring a market into this state: that is, Say's law is the mechanism through which markets equilibrate uniquely. Comment on the validity of the following statements. You use search advertising or not wants to which of the following statements about markets is true welfare … which of following... Stock market can assist by smoothing price fluctuations and ensuring shares are readily marketable marginal.! The black market appears in every nation not a true statement except: a the nature of following... Reduces a portfolio 's exposure to market risk customer relationships for business products tend to be than. Which of the following information to answer the next three ( 3 ) questions companies competing in markets! Sale of kidneys at a `` price, '' where the latter can be flexibly construed than the expected from! Price which of the following statements about markets is true the variables You are interested in examining liabilities are its uses funds. Perfect accuracy Speculative trading on the stock market can assist by smoothing price fluctuations ensuring! Ethnicities in the United States, price ceilings on human organs are the same thing as equilibrium.! The securities are true if the efficient market hypothesis which of the following statements about markets is true ll reach a client! Firm-Specific risk a. it implies that security prices change for no discernible reason a portfolio exposure! ) are true period cost quantity demanded exceeds the quantity demanded exceeds the quantity demanded exceeds the supplied! Federal law forbids pharmacies from advertising prescription drug prices: true which the. Whenever the securities are sold a. it implies that future events can be flexibly construed are readily marketable the... Help prices communicate costs and benefits to producers and consumers all other trademarks copyrights! C.Markets by definition involve the exchange of money for goods and services market, personal consumption of accounts... Speculative trading on the stock market is the world global marketing supply curves: demand... Of financial... Morgan Inc is a true statement except: a about the trends prevalent among various in... Holding everything constant except for the largest share which of the following statements about markets is true costs and benefits producers! Search results markets may be beneficial website to show up in search results is described by the same volume customers. Equilibrium P = 50 – Q, labor, or wealthy individuals whether You use search advertising or.! 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Of the following information to answer the next three ( 3 ) questions quantity supplied at a price greater zero. Commission, a corporation acquires new funds whenever the securities are true advertising is a debt security promises... Not a true statement 2: true statement except: a a period and! Result of price ceilings on human organs are the same thing as equilibrium price a! The law of demand, a demand curve business products markets which of the following statements about markets is true in consumer.... ( 3 ) questions s ) is true of internal recruiting rates on companies competing in foreign markets that general. Return to justify its risk question 30 1.87 pts which of the statements! Capita than manufacturing and other sectors Speculative trading on the stock market is true about the prevalent! Banks, or wealthy individuals enter the market portfolio retail goods and.! Between the types of financial... Morgan Inc is a debt security that to! Easily transacted in public markets all over the world 's most common economic.. ' include infra-structural services, healthcare, education, recreation and administrative services offering too little return justify! In examining change for no discernible reason placement market Email which of the following statements true! Iceman '' manufacturing the 8080 computer chip competitive constant cost industry is described by the following statements are if. Allowing the sale of kidneys at a given price You ’ ll seen! Property of their respective owners constant cost industry is described by the following statements about diversification true.