Regarding the Institutional Requirements of Efficient Markets

question 18

Multiple Choice

Regarding the institutional requirements of efficient markets,

• A)Western economic theory ignores the operation of efficient markets
• B)market economists have an almost perfect understanding
• C)market economists would never take the necessary institutions for granted
• D)those involved in a transition from centrally planned economy must develop a deep appreciation
• E)None of the answers is correct

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Definitions:

Opportunity Cost

Opportunity cost refers to the value of the next best alternative that is foregone when choosing one option over another.

Ice Cream

A frozen dessert made from dairy products, sweeteners, and flavorings, enjoyed as a treat or snack.

Apple Pie

A traditional dessert made from apples and pastry dough, often seasoned with cinnamon, sugar, and sometimes butter, and baked until golden brown.

Output

The total amount of goods and services produced by an economy, firm, or machine over a specific period.