Scarcity and Choice Are the Basic Problems of Economics; the Supply

question 139

True/False

Scarcity and choice are the basic problems of economics; the supply and demand mechanism is the basic investigative tool of economics.

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Definitions:

Insider Trading

The illegal buying or selling of a publicly-traded company's stock by someone who has non-public, material information about that stock.

Financial Markets

Venues where traders buy and sell assets such as stocks, bonds, currencies, and derivatives.

Weak Form

In financial market theory, this term refers to the hypothesis that asset prices fully reflect all historical price information, arguing that past price movements are not predictive of future prices.

Market Efficiency

A concept describing the extent to which stock prices reflect all available, relevant information, making it impossible to consistently achieve higher returns.