Question

In: Economics

In which of the following markets do you expect efficient outcomes? Explain your position. Your answer...

In which of the following markets do you expect efficient outcomes? Explain your position. Your answer to each question should not extend beyond 3 to 5 sentences (i.e., short succinct answers are preferred).

a. Hurricane insurance for beach houses in Florida.

b. Medical insurance.

c. Stock market.

d. MP3 players including iPods.

e. Student loans.

f. Housing.

Solutions

Expert Solution

Stock Market :- The stock market is a good option which i would consider for efficient outcome. Because of the stock market is great platform as in long run the companies in which we want to invest will always grow as the company work for the profit maximization and in the long run the prices of our occupied shares will also rise which will lead to greater return. Even if we trade we can earn millions in selling and purchasing of shares. (Example :- Warren buffett )

Rahul Sunny answered 2 years ago
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