Driving in Your Car, You Hear That Microsoft Has Announced

question 311

Multiple Choice

Driving in your car, you hear that Microsoft has announced that they have cornered the market on Internet technology. Knowing this is great news for Microsoft, when you arrive at a phone 30
Minutes later you call your broker and are able to buy Microsoft stock before its price moves up on
The news. This is a violation of ___________ market efficiency.

• A) weak form
• B) semi-weak form
• C) semi-strong form
• D) strong form
• E) TSX stock

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Definitions:

Economic Adjustments

Modifications in market behavior or policies aimed at correcting imbalances and achieving economic stability or growth.

Economic Profits

The financial gain achieved when the revenue from business activities exceeds the costs, expenses, and taxes needed to sustain the activity, including opportunity costs.

Purely Competitive Industries

Markets characterized by many buyers and sellers, homogeneous products, and free entry and exit, leading to price-taking behavior.

Cut-Throat Competition

Intense competition where competitors use aggressive tactics to undercut each other’s prices and gain market share.