When a Market Is Externally Efficient,it Means That

question 8

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:

Primary

First in order or importance; fundamental.

Social Comparison

The act of evaluating oneself by comparison with others, often to assess abilities, successes, or social standing.

Middle Childhood

A developmental phase approximately between the ages of 6 and 12, marked by cognitive, emotional, and social growth.

Conservation

The principle that the amount of a substance remains the same (i.e., is conserved) even when its appearance changes.