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

Question

Want to see the full answer?

Answer 1

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Immediately after an ice storm brought down power lines throughout the region, hardware stores were sold out of batteries and flashlights. However, within a couple of days, special deliveries brought in extra batteries and flashlights, and everyone who wanted to buy a flashlight or batteries was able to do so. Which of the following principles of economic interaction best describes this scenario? 1. When markets do not achieve efficiency, government intervention can improve overall welfare. 2. Markets allocate goods effectively. 3. All costs are opportunity costs. 4. There are gains from trade.

Which of the following best demonstrates the influence of economic factors on consumer decision-making? a. A consumer buys a Lexus after her neighbors and garden club pals each buy one. b. A married couple with three young children purchase a minivan. c. A blue collar worker holds off on buying a new truck, pending potential layoffs at work. d. A young professional buys a utility vehicle for off-road exploring.

I. Essay. Explain the following.1. What is Applied Economics?2. What are the three basic economic concepts and briefly explain each. 3. What are the two assumptions of economics? 4. What are the basic economic problems? 5. What are the factors of production?

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

Want to see the full answer?

Check out a sample textbook solution

See solution

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.

Want to see the full answer?

Chapter 1 Solutions