The efficient market hypothesis would lead to the conclusion that
A. people who win big in the stock market are more lucky than smart.
B. only the highly skilled investors should put their money into the stock market.
C. people who win big in the stock market are usually very good investors.
D. markets are not good anticipators of events that affect stock value.
Answer: A
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In the economic way of thinking, money is
A) the root of all evil. B) what makes the world go round. C) a general medium of exchange. D) an institution, which tends to increase transaction costs. E) the source of scarcity in commercial society.
Characteristics of a perfectly competitive market include:
A. the presence of transaction costs. B. differentiated products. C. many sellers, each with a small market share. D. All of these are characteristics of a perfectly competitive market.
The Dutch Disease had occurred in Netherlands because:
a. the Netherlands government had borrowed heavily from the World Bank to meet its Balance of Payment deficits. b. the price of the primary commodities declined in the international market. c. the demand for natural gas exports from Netherlands increased substantially. d. the currency of Netherlands depreciated in the international market. e. the price of the commodities manufactured by Netherlands declined in the international market.
An obstacle that prohibits new firms from entering an industry defines
A. economies of scale. B. barriers to entry. C. monopoly power. D. natural monopoly.