One Measure of the Extent of Market Inefficiency Is

question 38

Multiple Choice

One measure of the extent of market inefficiency is

• A)how far market price deviates from equilibrium.
• B)how far quantity exchanged deviates from equilibrium.
• C)the size of the economic surplus.
• D)the size of the deadweight loss.
• E)the difference between total economic surplus and deadweight loss.

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Definitions:

Standard Deviation

A tool to determine the degree of difference or dispersion within a batch of data.

Standard Normal

A type of normal distribution with a mean of 0 and a standard deviation of 1.

Random Variable

A numerical value variable resulting from random phenomena.

Random Variable

A variable representing numerical results from a chance event.