Other Things Being Equal, the Ratio of Tobin's Q Will

question 81

Multiple Choice

Other things being equal, the ratio of Tobin's q will rise if:

• A) stock prices fall.
• B) the replacement cost of capital rises.
• C) more capital is installed.
• D) stock prices rise.

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Definitions:

Intrinsic Motivations

Internal drives to perform a task or engage in an activity purely because of the inherent satisfaction and enjoyment derived from doing it.

Extrinsic Motivations

Inspiration fueled by outside incentives, including financial gain, recognition, academic achievement, and commendation.

Overjustification Effect

A phenomenon where providing an external incentive for a behavior that is already internally rewarding can lead to a decrease in intrinsic motivation for that behavior.

Intrinsic Motivation

The drive to engage in an activity for its own sake, deriving pleasure and satisfaction from the activity itself rather than external rewards.