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.

Question

Jennifer Gonzalez · Accepted Answer

Final Answer : B, Explanation :  In an efficient market, prices reflect all available information, so profit opportunities from undervalued or overvalued assets are quickly exploited by traders and corrected, making these opportunities disappear almost instantaneously.

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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Learning Objectives

Learning Objectives

Related questions

An efficient market is characterized by the fact thatA) 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.

Definitions

Learning Objectives

Learning Objectives

Related questions

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.