On Average in U

question 3

True/False

On average in U.S., during the past 75 years, the return on large-company stocks has exceeded the return on long-term corporate bonds.

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Definitions:

Economic Efficiency

A situation in which resources are used in a way that maximizes the production of goods and services at the lowest cost.

Ideal Economic Efficiency

A situation in which resources are allocated in a way that maximizes the net benefit to society.

Market Failure

Refers to a situation where the allocation of goods and services by a free market is not efficient, often leading to negative externalities.

Externalities

Indirect effects of production or consumption activities on third parties, which can be either positive or negative and are not reflected in market prices.