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Q: How does a cost efficient capital market help to reduce the prices of goods and services?
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What determines the prices of goods and services in the product market?

Supply and demand. Supply and demand determines the prices of goods and services in the market.


What is an efficient market and what are the implications of efficient markets for us?

An efficient market is the one that has stock prices which reflect al the information that is relevant and available. The implications of efficient markets is that they clearly advise on the investment options one has in terms of stocks and shares.


The efficient market hypothesis deals primarily with?

the degree to which prices adjust to new information


How would you define efficient security markets?

The efficient security markets can be defined as a market whereby the prices of the securities fully reflect all the public information at all times. The market efficiency does not require that the market prices be equal to that of the true value at every point in time.


Why are command economies less efficient the market economies?

the competition in the market economies encourages both qyality and low prices.


Why are command economies usually less efficient than market economies?

The competition in market economies encourages both quality and low prices.


Why are command economies usuall less efficient than market economies?

The competition in market economies encourages both quality and low prices.


Why are commanded economies usually less efficient than market economies?

The competition in market economies encourages both quality and low prices.


What best describes an increase in the general market prices of goods and services?

Inflation


What are the components of a free market economy?

A free market economy is a market based one. The prices of goods and services are determined independently in a free market.


Does the efficiency of the price mechanism ensure that market our based economy is an equitable one?

In the market, prices ration away the shortages of highly desirable goods and the surplus of less desirable ones appearing. This suggests that the market place is very efficient as a means of allocation and distribution. On the other had, the distribution of goods and services may not be equitable. We may summarize by saying that the market entails both positive and negative aspects. The market place is often efficient, but not necessarily equitable.


How are market economies similar to command economies?

The similarities between command economy and market economy include the following: both have - producers, consumers, retailers, goods, services, prices, incomes, distribution, money, labor, capital, technology,