If the Financial Markets Are __________ Efficient, Then Laws Prohibiting

question 61

Multiple Choice

If the financial markets are __________ efficient, then laws prohibiting insider trading are unnecessary.

• A) mild-form
• B) weak-form
• C) historical-form
• D) semi-strong form
• E) strong-form

Understand the different roles and growing involvement of the government in economic and social issues.

Grasp the concepts and implications of different sources and structures of federal spending and taxation.

Recognize the impact of tax policies on different income groups and their progressivity or regressivity.

Calculate taxable income, taxes paid, average and marginal tax rates based on given data.

---

Definitions:

Industry Equilibrium

A state where supply and demand in an industry are balanced, leading to stable prices and quantities.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial gain in excess of the opportunity costs.

Long-run Equilibrium

A state in which all firms in a market are earning zero economic profits, ensuring that no firm has an incentive to enter or exit the market.

Industry

Describes the aggregate of manufacturing or technically productive enterprises in a particular field, often named after its principal product.