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Markets are efficient only when they reflect all available information, thereby limiting the need for market participants to expend effort in figuring out the true "fair price." However if the latter is true and participants due not expend the effort to properly price the security, then the prices cannot be efficient.
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Explain the concept of Market Efficiency Is Arbitrage possible in an efficient market Why or why not What is some of the evidence for and against market efficiency No more than two pages please?
what are the types of market efficiency in nigeria?
What invisible hand directs the free market?
Incentives and efficiency
How does competition in a market affect allocative and productive efficiency?
A competitive market, firms act with their benefit at heart. If a firm is producing at productive efficiency, it produces goods at a relatively low expenditure, it can sell at low prices and hence compete well in the market.
Do capital goods improve productive efficiency in market economies?
Yes they do
Why is the economic efficiency of market economies important?
it is major factor in nation's wealth
What is an energy efficiency paradox?
An energy efficiency paradox is when there is a high demand for energy as much as there are new developments in trying to reduce its consumption
Explain the concept of Market Efficiency Is Arbitrage possible in an efficient market Why or why not What is some of the evidence for and against market efficiency No more than two pages please?
what are the types of market efficiency in nigeria?
What is meant by efficiency continuum?
The efficiency continuum refers to capital markets. Within a capital market, if something is reasonable and efficient to the market, it is said to be on the efficiency continuum.
What is the paradox of economic freedom?
The Paradox of Economic Freedom in the market system is shown in the way that although something is a free market, when something is out of the ordinary it puts into motion things that re-balance the market and bring things back to normal. You are able to do what you want, but if what you do isn't what the market wants or doesn't follow its rules, you get economic failure.
Which of the following is characteristic of a competitive market?
efficiency
When government imposes a price ceiling or a price floor in a market?
Efficiency in the market is enhanced.
What invisible hand directs the free market?
Incentives and efficiency
How does competition in a market affect allocative and productive efficiency?
A competitive market, firms act with their benefit at heart. If a firm is producing at productive efficiency, it produces goods at a relatively low expenditure, it can sell at low prices and hence compete well in the market.
Do capital goods improve productive efficiency in market economies?
Yes they do
Why is the economic efficiency of market economies important?
it is major factor in nation's wealth
The market allocates capital to companies based on?
Risk, efficiency and expected returns.
Which economic goals are difficult to achieve in a pure market system?
efficiency and freedom
