The Concept of "Random Walk" Applies Most Closely to Predictions

question 158

Multiple Choice

The concept of "random walk" applies most closely to predictions of

• A)consumer demand for a product after a price increase.
• B)the effects of a tax on the supply of oil.
• C)the effects of transfer payments on labor supply.
• D)the price of a particular stock one year from now.

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Definitions:

Ground Water

Underground water stored in soil or within rock pores and cracks.

Hydraulic Gradient

The slope of the water table or potentiometric surface, indicating the direction and rate of groundwater flow.

Limestone Cave

A natural underground space formed by the dissolution of limestone rock by water.

Water Table

The level below which the ground is saturated with water, marking the boundary between the soil surface and groundwater.