Higher Productivity Will Generally Lead to More and Higher Quality

question 29

True/False

Higher productivity will generally lead to more and higher quality goods being produced.

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Definitions:

Market Efficiency

Market efficiency is a concept where all available information is already reflected in asset prices, implying that assets are priced perfectly and it is impossible to "beat the market" through expert stock selection or market timing.

Microsoft Stock

The shares of Microsoft Corporation, representing ownership in the company, traded on the stock market.

Strong Form

A hypothesis suggesting that market prices fully reflect all information, both public and private, implying no one can consistently achieve higher returns.

Market Efficiency

A concept that describes how well prices in financial markets reflect all available and relevant information.