Why Does the Stock Market Often Fall After 'Good' Economic

question 32

Multiple Choice

Why does the stock market often fall after 'good' economic news?

• A) Good economic news generally results in a fall in earnings.
• B) An increase in earnings generally reduces dividends.
• C) The market is predicting the negative effect of the next stage.
• D) Investors are confident about future increases in share prices.

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Definitions:

Primary Productivity

The rate at which plants and other photosynthetic organisms produce organic compounds in an ecosystem from carbon dioxide and water using sunlight.

Nucleic Acids

Biochemical compounds that serve as the blueprint for proteins and, through their sequencing of nucleotides, carry genetic information in cells.

Major Component

A principal part or element of a larger system, essential for its functioning or structure.

Gross Primary Production

The total amount of chemical energy generated by plants through photosynthesis before any energy is used for life processes like respiration.