An efficient market is characterized by the fact that
A. there are no opportunity costs.
B. wealth is distributed fairly.
C. profit opportunities are eliminated almost instantaneously.
D. output is steady or growing and there is low inflation.
Answer: C
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Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S1 (point A). If there is a surplus of motorcycles how will the equilibrium point change?
A) The equilibrium point will move from A to B. B) There will be no change in the equilibrium point. C) The equilibrium point will move from A to C. D) The equilibrium point will move from A to E.
If the price of gasoline was $3.25 a gallon and it is now $3.75 a gallon, what is the percentage change in price?
A) 7.1 percent B) 13.3 percent C) 15.4 percent D) 33.3 percent
When the euro falls in value relative to other currencies, then
A) goods imported into Europe rise in price. B) European exports rise in price. C) neither European exports nor imports rise in price. D) both European exports and imports rise in price.
The demand curve for apples slopes downward
a. because supply and demand are equal in equilibrium b. since producers supply more when consumers demand more c. because people are assumed to be basically greedy d. because the law of demand holds in the market for apples e. because apples are preferred to all other goods