Which One of the Following Is Required for a Trader

question 9

Multiple Choice

Which one of the following is required for a trader to earn excess profits?

• A) excessive trading
• B) excessive research
• C) market inefficiency
• D) highly volatile market state
• E) relatively stable market state

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in the market, leading to market balance.

Equilibrium Quantity

Equilibrium quantity is the quantity of goods or services supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded in a market.

Emissions Tax

A tax levied on companies for the pollutants they emit into the environment.

Pollution

The introduction of contaminants into the natural environment that cause adverse change, affecting air, water, and soil quality detrimentally.