When a Market Is Externally Efficient, It Means That

question 85

Multiple Choice

When a market is externally efficient, it means that

• A) timely and accurate information is available.
• B) the market is liquid.
• C) transaction costs are low.
• D) prices adjust rapidly to new information.
• E) the number of buyers and sellers are the same.

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Definitions:

Centralization

The process of concentrating control and authority into a central organization or location.

Western Homogeneity

The perception or belief in a shared and uniform set of cultural characteristics, values, and practices across Western nations, overlooking regional and individual diversity.

Neoliberalism

A political and economic philosophy advocating for free market principles, reduced government regulation, and a minimization of the state's role in society.

Individual Liberty

The freedom of individuals to act as they choose, as long as they do not infringe on the equal rights of others, often considered a foundational aspect of democratic societies.