You Read a Story in the Newspaper Announcing the Proposed

question 43

Multiple Choice

You read a story in the newspaper announcing the proposed merger of Dell Computer and Gateway. The merger is expected to greatly increase Gateway's profitability. If you decide to invest in Gateway stock,you can expect to earn

• A)above average returns since you will share in the higher profits.
• B)above average returns since your stock price will definitely appreciate as higher profits are earned.
• C)below average returns since computer makers have low profit rates.
• D)a normal return since stock prices adjust to reflect expected changes in profitability almost immediately.

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Definitions:

Gypsies

A traditionally itinerant ethnic group, known among themselves as the Romani people.

Split Labor Market

A condition where the labor force is divided or segmented into subgroups with differing wages or working conditions, often based on race, ethnicity, or gender.

Edna Bonacich

A sociologist known for her contributions to the study of labor, ethnicity, and economic sociology.

Color-Blind Racism

An ideology that removes race as an explanation for any form of unequal treatment.