A characteristic of an efficient market is that
A) prices are equal for all securities.
B) bid-asked spreads are large.
C) prices reflect all available information.
D) all investors receive a positive rate of return.
C
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Refer to the figure above. What is the equilibrium price and quantity of the good?
A) Equilibrium price = $40, equilibrium quantity = 20 units B) Equilibrium price = $60, equilibrium quantity = 10 units C) Equilibrium price = $60, equilibrium quantity = 20 units D) Equilibrium price = $80, equilibrium quantity = 30 units
If excess reserves are $30,000, demand deposits are $100,000, and the required reserve ratio is 15 percent, then total reserves are
A. $45,000. B. $15,000. C. $130,000. D. $30,000.
Which of the following is not correct?
a. Earnings from capital may be paid to households in the form of dividends. b. Earnings from capital may be retained by firms to purchase additional capital. c. Firms may not pay out all of their earnings to households. d. Firms earn the highest profits when the owners of capital receive a value above the marginal product.
Which set of changes is definitely predicted to raise Real GDP in the short run?
A) Wealth increases and there is an adverse supply shock. B) Individuals expect higher (future) incomes and wage rates fall. C) Business taxes rise and wage rates fall. D) The U.S. dollar appreciates and there is a beneficial supply shock. E) none of the above