-In the Above Figure,an Increase in Productivity

question 290

Multiple Choice

-In the above figure,an increase in productivity

• A) shifts the supply curve from S to S1.
• B) shifts the supply curve from S to S2.
• C) results in a movement from point a to point b.
• D) results in a movement from point b to point a.
• E) has no effect.

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Definitions:

Efficient Market Hypothesis

The theory that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the overall market.

Stock Market

A public marketplace for buying, selling, and issuing shares of publicly held companies; facilitates economic transactions and information exchange regarding stock prices and company performance.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, widely used in finance to assess the volatility of an investment.

Volatility

Volatility refers to the degree of variation of a trading price series over time, typically measured by the standard deviation of returns.