Which of the Following Tend to Increase Security Market Prices

question 104

Multiple Choice

Which of the following tend to increase security market prices?
I. an increase in industrial production
II. an increase in corporate profits
III. an increase in the federal deficit when the economy is strong
IV. an increase in interest rates

• A) I and II only
• B) II and III only
• C) I, II and III only
• D) I, II, III and IV

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Definitions:

Product Differentiation

The marketing process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Demand Curve

A graph representing the relationship between the price of a good and the quantity demanded by consumers.

Barriers To Entry

Are obstacles that make it difficult for new competitors to enter a market, including high startup costs, strict regulations, and established brand loyalty among consumers.

Excess Capacity

Plant resources that are underused when imperfectly competitive firms produce less output than that associated with achieving minimum average total cost.