If the Efficient Market Hypothesis Is Correct Than the Current

question 57

True/False

If the efficient market hypothesis is correct than the current quotations on the forward market are reflecting all available information about likely future rates and providing unbiased estimate of the future spot rate.

Understand the concept of price elasticity of supply and how it is represented graphically.

Calculate the price elasticity of supply using the midpoint method.

Identify the characteristics of demand elasticity, including inelastic and elastic demand.

Analyze the effects of market changes, such as supply shocks, on product pricing and total revenue.

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Definitions:

Reinforcement

In behavioral psychology, a consequence applied that strengthens an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Latent Learning

Learning that occurs without any obvious reinforcement of the behavior or associations that are learned, becoming apparent only when there is an incentive to demonstrate it.

Variable-Ratio

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses, often used in gambling and behavior training.

Shaping

A method used in behavior therapy and training that involves reinforcing successive approximations of a target behavior until the desired behavior is achieved.