Define the efficient markets hypothesis
The efficient market hypothesis says that the value of an asset reflects all publicly available information about its value.
You might also like to view...
Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table below shows the reservation prices of the eight students enrolled in the class.StudentReservation Price($/Book)Q60R54S48T42U36V30W30X30 If Campus Books is permitted to charge 2 prices, and the bookstore knows customers with a reservation price above $30 never bother with coupons, whereas those with a reservation price of $30 or less always use them, then what will be the bookstore's total economic profit?
A. $158 B. $150 C. $154 D. $130
Everything else remaining unchanged, what is likely to happen to the equilibrium real interest rate and quantity of credit if the credit supply curve shifts to the right?
A) The equilibrium rate of interest will increase and the quantity of credit will decrease. B) The equilibrium rate of interest will decrease and the quantity of credit will increase. C) Both equilibrium rate of interest and quantity of credit will increase. D) Both equilibrium rate of interest and quantity of credit will decrease.
A positive externality occurs whenever:
a. an increase in the output of one firm lowers costs for other firms. b. a decrease in the output of one firm lowers costs for other firms. c. an increase in costs of one firm lowers costs for other firms. d. a decrease in one firm's hiring of labor lowers labor costs for other firms.
Which is not one of the criteria necessary for a commodity to make a suitable medium of exchange?
A) It should be durable. B) It should be of standardized quality. C) It should be valuable relative to its weight. D) It should have intrinsic value.