Efficient Markets

question 6

Multiple Choice

Efficient markets:

• A) maximize total surplus.
• B) can occur without a central planner.
• C) occur when a perfectly competitive, well-functioning market is in equilibrium.
• D) All of these are true.

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Definitions:

Response

A reaction to a specific stimulus or situation.

Acute

Describes a condition or phenomenon that is severe but of a short duration.

Dendrites

The branched extensions of neurons that receive electrical signals from other nerve cells and transmit them to the cell body.

Axons

Long nerve fibers that conduct electrical impulses away from the neuron's cell body.