Which of the Following Is NOT a Necessary Condition for an Efficient

question 81

Multiple Choice

Which of the following is NOT a necessary condition for an efficient market?

• A)Many buyers and sellers
• B)No prohibitively high barriers to entry
• C)Free and readily available information available to all participants
• D)No trading or transaction costs

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Definitions:

Domestic Price

The price of a good or service within a country, determined by domestic demand and supply.

Employment Levels

The number or percentage of people within a population who are currently employed, indicating the health of an economy.

International Gold Standard

A monetary system in which the standard economic unit of account is based on a fixed quantity of gold, allowing for stable exchange rates among countries.

Gold Flow

The movement of gold between countries, often used as a form of international payment or to stabilize currencies under the gold standard.