What do economists mean when they say markets are 'efficient'? Are global markets efficient?

What do economists mean when they say markets are 'efficient'? Are global markets efficient?

Expert Solution

Rahul Sunny answered 2 years ago

What does it mean to say that markets promote an efficient outcome for society? Explain the...

What does it mean to say that markets promote an efficient outcome for society? Explain the ways or mechanisms by which markets can promote efficiency.

What does it mean to say that markets are socially efficient? How does this relate to policy?

What does it mean when neoclassical economists say that discriminators are willing to pay to discriminate?

23. What does it mean when economists say that the Fed has attempted to "normalize" monetary...

23. What does it mean when economists say that the Fed has attempted to "normalize" monetary policy after the Great Recession? a. The Fed has tried to use monetary policy to restore the unemployment rate to its normal full employment rate of around 5 percent. b. The Fed has tried to use monetary policy to raise excess reserves back up to normal prerecession levels. c.The Fed has tried to make all of the monetary policy actions used during the financial...

1. When economists say that a good is non-rival in consumption, they mean that: Group of...

1. When economists say that a good is non-rival in consumption, they mean that: Group of answer choices no one wants the good. everyone wants the good. the good is widely available. more than one person can enjoy the good at the same time. 2. Private goods are: Group of answer choices rival in consumption and their benefits are nonexcludable. nonrival in consumption and their benefits are excludable. nonrival in consumption and their benefits are nonexcludable. rival in consumption and...

What do economists mean when they refer to administration as the 4th factor of production? Is...

What do economists mean when they refer to administration as the 4th factor of production? Is this factor necessarily complementary to the others? Does it demonstrate diminishing marginal returns? How can a manager tell?

In the market for common stocks, some economists say that this market is “efficient,” so that...

In the market for common stocks, some economists say that this market is “efficient,” so that there is no way to beat the return of the market as a whole but by buying stocks with “betas” greater than 1. Present the argument for this claim. Why do you think there might be evidence that isn’t consistent with this claim but that still can’t be exploited to make riskless profits systematically in the stock market?

Do you believe that global markets are efficient or inefficient or some combination? Defend your position.

What do we mean when we say that a histogram is skewed to the left? To...

What do we mean when we say that a histogram is skewed to the left? To the right? What is a bimodal histogram? Discuss the following statement: “A bimodal histogram usually results if we draw a sample from two populations at once.” Suppose you took a sample of weights of college football players and with this sample you included the weights of cheerleaders. Do you think a histogram made from the combined weights would be bimodal? Explain. write in your...

What does it mean to be market efficient? What is the link between perfect markets and...

What does it mean to be market efficient? What is the link between perfect markets and efficient markets? You see that the price of IBM is such that you expect it to earn 20% over the next year. Can you conclude that the market is inefficient? What types of markets are more likely to be inefficient? Given that a stock price is the PV of the firm’s cash flow, discuss the positions taken by a true believer, firm believer, mild...

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