If the Market Is Weak Form Efficient

question 51

Multiple Choice

If the market is weak form efficient:

• A) semistrong form efficiency holds.
• B) strong form efficiency must hold.
• C) semistrong form efficiency may hold.
• D) markets are not weak form efficient.
• E) None of these.

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Definitions:

Total Surplus

The total net gain to society from the creation and utilization of a product or service, expressed as the combined value of consumer surplus and producer surplus.

Positively Sloped

Characterizes a line or curve on a graph that moves upward as one moves from left to right, indicating a direct relationship between two variables.

Negatively Sloped

Describes a downward trend in a graph, indicating an inverse relationship between two variables, such as price and demand.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefit to society from the production and consumption of goods or services.