An implication of the efficient markets hypothesis is that
A) only sophisticated investors will be able to earn above-normal profits from financial investments.
B) above-normal profits are available only to major traders.
C) above-normal profits will be eliminated in the trading process.
D) unless he or she acts recklessly, the average investor should be able to make above-normal profits.
C
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Which of the following statements about economic resources is false?
A) Economic resources are also called factors of production. B) Economic resources include financial capital and money. C) Economic resources are used to produce goods and services. D) Some economic resources are human-made while others are found in nature.
Identify the correct statement from the following
a. Wages offered for a particular type of job are the same across the country. b. The labor market exhibits rapid adjustment to changes in supply or demand conditions. c. The labor market usually yields a range of wages rather than a unique equilibrium. d. Wages exhibit frequent and prompt changes in response to changes in market conditions.
By restricting the amount of a good that may be imported, quotas:
a. increase the price, thus causing domestic producers to sell less than they would with free trade. b. lower the price, thus allowing domestic producers to sell more than they would with free trade. c. increase the price and allow domestic producers to sell more at a higher price than they would with free trade. d. lower the price, thus causing domestic producers to realize lower total revenue from the quota item. e. simply replace foreign production with domestic production.
What is one reason private solutions to externalities do NOT always work?
a) Government participation in such solutions complicates the process. b) Some parties benefit from externalities. c) Interested parties incur costs in the bargaining process. d) The actual costs and benefits of the problem are difficult to see.