Which of the Following Is True of the War Labor

question 36

Multiple Choice

Which of the following is true of the War Labor Disputes (Smith-Connally) Act of June 1943?

• A) It authorized the president to seize and operate certain strike-bound plants.
• B) It suspended labor's right to strike for the duration of the war.
• C) It imposed a wage and price freeze for the duration of the war.
• D) It created an arbitration board separate from the NWLB to settle all labor disputes.

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Definitions:

Weak Form

Assumes that all information contained in past price movements is fully reflected in current market prices. Thus, information about recent trends in a stock’s price is of no use in selecting a stock.

Semistrong Form

States that current market prices reflect all publicly available information. Therefore, the only way to gain abnormal returns on a stock is to possess inside information about the company’s stock.

Stock Market Efficiency

The concept that all available information is reflected in stock prices, thus making it impossible to consistently achieve higher returns than the overall market.

Nonconstant Growth Model

A valuation approach for stocks that assumes a company's dividends will grow at different rates in different periods, unlike the constant growth model.