All of the Following Are Necessary Conditions for an Efficient

question 86

Multiple Choice

All of the following are necessary conditions for an efficient market EXCEPT

• A) low trading or transaction costs.
• B) many buyers and sellers.
• C) free and readily available information to market participants.
• D) low stock prices.

---

Definitions:

Federal Government

The national government of a federal country, which holds the authoritative powers conferred to it by a constitution.

Deficit

A deficit occurs when an entity's expenditures exceed its revenues over a specified period, often referring to government budgets.

Surplus

The situation in which the quantity supplied of a good exceeds the quantity demanded, often resulting in downward pressure on the price.

Thomas Robert Malthus

An English economist and demographer best known for his theory that population growth will outpace agricultural production, leading to widespread poverty and famine.