List the Three Forms of Market Efficiency and Explain the Bases

question 10

Essay

List the three forms of market efficiency and explain the bases for them.

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Definitions:

World Price

The international market price of a good or service, determined by world demand and supply.

Domestic Price

The price of goods or services within a country's borders.

Efficient Nation

A country that utilizes its resources in the most productive way possible, maximizing output and welfare with minimal waste.

Comparative Advantage

The capacity of a person, business, or nation to provide a product or service with a smaller opportunity cost compared to rival entities.