An Efficient Market Is Characterized by the Fact That

question 227

Multiple Choice

An efficient market is characterized by the fact that

• A) output is steady or growing and there is low inflation.
• B) profit opportunities are eliminated almost instantaneously.
• C) there are no opportunity costs.
• D) wealth is distributed fairly.

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Definitions:

Extinction

The process through which a species, family, or larger group of organisms permanently disappears from Earth.

Cultural Relativism

The principle that an individual's beliefs and activities should be understood by others in terms of that individual's own culture, avoiding ethnocentric judgments.

Ethnocentrism

The tendency to view one's own culture or ethnic group as superior to others, often leading to judging other cultures by one's own cultural norms and standards.

Sanctions

Penalties or other means of enforcement used to provide incentives for obedience with the law, or with rules and regulations; can be positive (rewarding) or negative (punishing).