An Efficient Allocation of Resources Would Be Characterised By

question 128

Multiple Choice

An efficient allocation of resources would be characterised by:

• A)a good being produced by the sellers with lowest cost
• B)a shortage at the current market price
• C)a good is not being bought by the buyers at highest value
• D)all of the above are correct

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Definitions:

Market Risk Premium

The extra return investors expect to earn from holding a risky market portfolio instead of risk-free securities.

Beta

An indicator of how much a stock fluctuates in comparison to the general market, with a beta above 1 signifying more volatility than the market average.

Required Rate Of Return

The lowest yearly percentage gain necessary to attract individuals or organizations to invest in a specific security or project.

Deflation

A decrease in the general price level of goods and services over a period, leading to increased purchasing power of money.