Composites of Stock Prices

question 21

Multiple Choice

Composites of stock prices

• A)are completely random and unpredictable.
• B)fluctuate randomly around a rising trend.
• C)are destabilized by speculations.
• D)show no trend but fluctuate widely.

Recognize the role of R&D spending in generating technological advances.

Distinguish between different forms of technological advances (product innovation, process innovation) and their economic impacts.

Understand the mechanisms for protecting intellectual property and their role in encouraging innovation.

Grasp the economic implications of innovation and diffusion in the marketplace.

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Definitions:

Interest

The cost that creditors charge for use of their capital.

Moral Hazard

The risk that one party to an agreement can change their behavior to the detriment of another after the transaction has taken place, often due to asymmetrical information.

Bonded

indicates a state of being secured by a bond, involving a financial guarantee or protection against losses.

Shirking

The act of avoiding or neglecting responsibilities, especially in the workplace, leading to reduced productivity or performance.