If expected return is less than required return on an asset, rational investors will:. (a) buy the asset, which will drive the price up and cause expected return to reach the level of the required return.
(b) sell the asset, which will drive the price down and cause the expected return to reach the level of the required return.
(c) sell the asset, which will drive the price up and cause the expected return to reach the level of the required return.
(d) buy the asset, since price is expected to increase.

Label each of the following statements true, false, or uncertain. explain your choice carefully. a. workers benefit equally from the process of creative destruction. b. in the past two decades, the real wages of low-skill u.s. workers have declined relative to the real wages of high-skill workers. c. technological progress leads to a decrease in employment if, and only if, the increase in output is smaller than the increase in productivity. d. the apparent decrease in the natural rate of unemployment in the united states in the second-half of the 1990s can be explained by the fact that productivity growth was unexpectedly high during that period.

Which of the following is a function performed by market prices? a. market prices communicate information to buyers and sellers. b. market prices coordinate the decisions of buyers and sellers. c. market prices motivate entrepreneurs to produce those products that are currently most desired relative to their costs of production. d. all of the above are functions performed by market prices.

"richard wants to know how his company handles late lunches but does not want to ask anyone. instead, he watches others take late lunches and observes the manager's reaction. richard is"