Author Question: What is an informational cascade? A) An excess flow of market information that makes it difficult ... (Read 60 times)

misspop · **on:** Jul 1, 2018

What is an informational cascade?

A) An excess flow of market information that makes it difficult for an investor to form a rational decision.
B) A continual decline in the quality of market information from public sources due to sequential budget cuts.
C) A continual increase in the quality of market information from public sources due to broader use of the internet by market participants.
D) A sequence of decisions based on the actions of others rather than fundamental information.

Question 2

See Scenario 4.1. What is Daniel's budget constraint?

A) 240 = 3Pc + 3Pd
B) 240 = 3Qc + 3Qd
C) 240 = (Pc)(Qc)
D) 240 = (Qc)(Qd)
E) none of the above