The Modern View of Technological Advance Is That It

question 142

Multiple Choice

The modern view of technological advance is that it

• A)is rooted in the independent advance of science, an element largely external to the market system.
• B)is rarely carried out by oligopolists or pure monopolists.
• C)is an internal element of capitalism, occurring in response to profit incentives.
• D)necessarily destroys existing monopoly power.

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Definitions:

Weakly Efficient

A term referring to a form of market efficiency where all past trading information is fully reflected in stock prices, but future and private information may not be.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are professionally managed, allowing investors access to a broad spectrum of investments.

Insiders

Individuals within a corporation who have access to private, non-public information which might influence the company's stock price.

Small-Firm Anomaly

The historical observation that smaller firms, or those with a lower market capitalization, tend to outperform larger companies on a risk-adjusted basis.