A decrease in the unemployment rate from 21 percent to 17 percent ...

[nelaaney]

A decrease in the unemployment rate from 21 percent to 17 percent can be illustrated as:
 a. an inward shift of the production possibilities curve.
 b. an outward shift of the production possibilities curve.
 c. a movement down and to the right along the production possibilities curve.
 d. a movement from a point inside the production possibilities curve to a point closer to the production possibilities curve.

Question 2

Would a relatively high P/E ratio lead us to conclude that a stock is overvalued or undervalued? Why or why not?

[hugthug12]

Answer to Question 1

d

Answer to Question 2

If a stock's price to earnings ratio is higher than other firms in the industry, that stock could be considered overvalued. However, the higher ratio may be an indication that the market expects the company's performance to improve significantly in the future.