If market is efficient , identify whether the statement belongs to positive, normative or art of economies.

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Answer 1

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Definition Definition Degree to which financial markets incorporate all available information into the prices of assets. In a more efficient market, the prices reflect the available information more than that in a weak efficient market. It is difficult for investors to outperform the market in a strong efficient market. This is because all the available information is already discounted in the asset's price. However, in a weak-form efficiency, the market does not reflect all information in the asset's price. As a result, it becomes easier to generate better returns in a weak form or an inefficient market.

Chapter 1.1, Problem 10Q

(a)

To determine

If market is efficient, identify whether the statement belongs to positive, normative or art of economies.

(b)

To determine

If market achieves efficient results, identify whether the statement belongs to positive, normative or art of economies.

(c)

To determine

Identify if one wants a reasonably efficient result, market should probably be relied on, whether this statement belong to positive, normative or art of economies.

(d)

To determine

Identify whether distribution of income should be left to markets, and whether the statement belongs to positive, normative or art of economies.

(e)

To determine

Identify ‘the market allocates income according to contributions of factors of production’ whether the statement belongs to positive, normative or art of economies.

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Gates Doubles Down on Malaria Eradication The End Malaria Council, convened by Bill Gates and Ray Chambers, seeks to mobilize resources to prevent and treat malaria. The current level of financing is too low to end malaria. Bruno Moonen, deputy director for malaria at the Gates Foundation, says that more resources, more leadership, and new technologies are needed to eradicate malaria in the current generation. Is Bruno Moonen talking about production efficiency or allocative efficiency or both? Bruno Moonen is talking about _______. A. production efficiency but not allocative efficiency B. production efficiency and allocative efficiency C. allocative efficiency but not production efficiency D. neither production efficiency nor allocative efficiency

Answer 2

Question

Definition Definition Degree to which financial markets incorporate all available information into the prices of assets. In a more efficient market, the prices reflect the available information more than that in a weak efficient market. It is difficult for investors to outperform the market in a strong efficient market. This is because all the available information is already discounted in the asset's price. However, in a weak-form efficiency, the market does not reflect all information in the asset's price. As a result, it becomes easier to generate better returns in a weak form or an inefficient market.

Chapter 1.1, Problem 10Q

(a)

To determine

If market is efficient, identify whether the statement belongs to positive, normative or art of economies.

(b)

To determine

If market achieves efficient results, identify whether the statement belongs to positive, normative or art of economies.

(c)

To determine

Identify if one wants a reasonably efficient result, market should probably be relied on, whether this statement belong to positive, normative or art of economies.

(d)

To determine

Identify whether distribution of income should be left to markets, and whether the statement belongs to positive, normative or art of economies.

(e)

To determine

Identify ‘the market allocates income according to contributions of factors of production’ whether the statement belongs to positive, normative or art of economies.

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Answer 3

Question

Definition Definition Degree to which financial markets incorporate all available information into the prices of assets. In a more efficient market, the prices reflect the available information more than that in a weak efficient market. It is difficult for investors to outperform the market in a strong efficient market. This is because all the available information is already discounted in the asset's price. However, in a weak-form efficiency, the market does not reflect all information in the asset's price. As a result, it becomes easier to generate better returns in a weak form or an inefficient market.

Chapter 1.1, Problem 10Q

(a)

To determine

If market is efficient, identify whether the statement belongs to positive, normative or art of economies.

(b)

To determine

If market achieves efficient results, identify whether the statement belongs to positive, normative or art of economies.

(c)

To determine

Identify if one wants a reasonably efficient result, market should probably be relied on, whether this statement belong to positive, normative or art of economies.

(d)

To determine

Identify whether distribution of income should be left to markets, and whether the statement belongs to positive, normative or art of economies.

(e)

To determine

Identify ‘the market allocates income according to contributions of factors of production’ whether the statement belongs to positive, normative or art of economies.

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Answer 4

Question

Definition Definition Degree to which financial markets incorporate all available information into the prices of assets. In a more efficient market, the prices reflect the available information more than that in a weak efficient market. It is difficult for investors to outperform the market in a strong efficient market. This is because all the available information is already discounted in the asset's price. However, in a weak-form efficiency, the market does not reflect all information in the asset's price. As a result, it becomes easier to generate better returns in a weak form or an inefficient market.

Chapter 1.1, Problem 10Q

(a)

To determine

If market is efficient, identify whether the statement belongs to positive, normative or art of economies.

(b)

To determine

If market achieves efficient results, identify whether the statement belongs to positive, normative or art of economies.

(c)

To determine

Identify if one wants a reasonably efficient result, market should probably be relied on, whether this statement belong to positive, normative or art of economies.

(d)

To determine

Identify whether distribution of income should be left to markets, and whether the statement belongs to positive, normative or art of economies.

(e)

To determine

Identify ‘the market allocates income according to contributions of factors of production’ whether the statement belongs to positive, normative or art of economies.

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Answer 5

Chapter 1.1, Problem 10Q

(a)

To determine

If market is efficient, identify whether the statement belongs to positive, normative or art of economies.

(b)

To determine

If market achieves efficient results, identify whether the statement belongs to positive, normative or art of economies.

(c)

To determine

Identify if one wants a reasonably efficient result, market should probably be relied on, whether this statement belong to positive, normative or art of economies.

(d)

To determine

Identify whether distribution of income should be left to markets, and whether the statement belongs to positive, normative or art of economies.

(e)

To determine

Identify ‘the market allocates income according to contributions of factors of production’ whether the statement belongs to positive, normative or art of economies.

Answer 6

Chapter 1.1, Problem 10Q

(a)

To determine

If market is efficient, identify whether the statement belongs to positive, normative or art of economies.

Answer 7

Chapter 1.1, Problem 10Q

(a)

To determine

If market is efficient, identify whether the statement belongs to positive, normative or art of economies.

Answer 8

(b)

To determine

If market achieves efficient results, identify whether the statement belongs to positive, normative or art of economies.

Answer 9

(b)

To determine

If market achieves efficient results, identify whether the statement belongs to positive, normative or art of economies.

Answer 10

(c)

To determine

Identify if one wants a reasonably efficient result, market should probably be relied on, whether this statement belong to positive, normative or art of economies.

Answer 11

(c)

To determine

Identify if one wants a reasonably efficient result, market should probably be relied on, whether this statement belong to positive, normative or art of economies.

Answer 12

(d)

To determine

Identify whether distribution of income should be left to markets, and whether the statement belongs to positive, normative or art of economies.

Answer 13

(d)

To determine

Identify whether distribution of income should be left to markets, and whether the statement belongs to positive, normative or art of economies.

Answer 14

(e)

To determine

Identify ‘the market allocates income according to contributions of factors of production’ whether the statement belongs to positive, normative or art of economies.

Answer 15

(e)

To determine

Identify ‘the market allocates income according to contributions of factors of production’ whether the statement belongs to positive, normative or art of economies.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 1.1 - Prob. 1LO Ch. 1.1 - Prob. 1Q Ch. 1.1 - Prob. 2Q Ch. 1.1 - Prob. 3Q Ch. 1.1 - Prob. 4Q Ch. 1.1 - Prob. 5Q Ch. 1.1 - Prob. 6Q Ch. 1.1 - Prob. 7Q Ch. 1.1 - Prob. 8Q Ch. 1.1 - Prob. 9Q

If market is efficient , identify whether the statement belongs to positive, normative or art of economies.

Solution Summary: The author identifies whether the statement belongs to positive, normative, or art of economies. Positive economic concerns the description and explanation of economic phenomena.

Concept explainers

If market is efficient, identify whether the statement belongs to positive, normative or art of economies.

If market achieves efficient results, identify whether the statement belongs to positive, normative or art of economies.

Identify if one wants a reasonably efficient result, market should probably be relied on, whether this statement belong to positive, normative or art of economies.

Identify whether distribution of income should be left to markets, and whether the statement belongs to positive, normative or art of economies.

Identify ‘the market allocates income according to contributions of factors of production’ whether the statement belongs to positive, normative or art of economies.

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Chapter 1 Solutions