The Theory of Efficient Markets

question 94

Multiple Choice

The theory of efficient markets:

• A) rules out high returns due to chance.
• B) says insider information makes markets less efficient.
• C) allows for higher than average returns if the investor takes higher than average risk.
• D) assumes people have equal luck.

Describe the Neolithic revolution and its consequences.

Define and provide examples of informal economies.

Comprehend the importance of the steam engine in England to the Industrial Revolution.

Identify various forms of exchange and markets in nonindustrial societies.

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Definitions:

Productive

Describes a state or quality of producing a significant amount of output per unit of input, often associated with efficiency and effectiveness in economic terms.

Capital

Resources and assets, such as buildings, machinery, and equipment, used to produce goods and services.

Average Total Cost

The total cost of production divided by the number of goods produced; it consists of both fixed and variable costs.

Mixers

Devices used in cooking and baking to blend, beat, or whip ingredients together to form a mixture.