markets are efficient because people make rational choices
option C is correct answer
1) Markets are efficient because people make choices. a) individual b) irrational c) rational d) good...
Ethical Decision Questions Do people that make rational choices deserve the same level of care as those who make irrational decisions?
Why do people "have" to make choices? And why are all choices considered rational "from an economic point of view"?
Semi-strong-form efficient markets are not weak-form efficient. Group of answer choices A) True B) False
Economic markets have a hard time producing the efficient quantity of a public good because of forced riders. Select one: O True False
11. A rational person will a. never make mistakes in choices. b. select the choice where the expected present benefit is greater than the expected value of the costs. c. follow the Maslow Hierarchy of wants. d. be uncaring and void of emotions 12. Assume that your company produces two goods; laptops and tablets. Assume also that your company has limited resources (including time) to devote to producing these items. Now assume that the laptop team...
The traditional economic framework assumes that people make rational economic decisions, that is, that they act in ways that maximize their utilities. However, behavioral economists have found evidence that is inconsistent with economists’ rationality assumptions. Which of the following is an example of evidence of irrational behavior? (Note: Read carefully.) a. Some stock market investors rush to invest their money when stock prices are rising rapidly. b. Some people are willing to drive an extra mile to save $10 on...
What are the three forces behind individual decision making that help people make economic choices?
• How do individuals allocate scarce resources? (How do people make choices?) • How do markets allocate scarce resources? • Is market allocation desirable?
Correctly answer each part of question 7 with answer choices provided. 7. Efficient markets hypothesis Aa Aa True or False: The efficient markets hypothesis holds only if all investors are rational. O False O True Almost all financial theory and decision models assume that the financial markets are efficient. The informational efficiency of financial markets determines the ability of investors to "beat" the market and earn excess (or abnormal) returns on their investments. If the markets are efficient, they will...
Regarding market efficiency, which of the following is true? a.) Equities markets are perfectly efficient. There has never been an opportunity to make an abnormal profit within the major equities markets. b.) Equities markets are very efficient. In the past, profit-taking opportunities have occasionally occurred, and some have been well-documented in finance literature. However, such anomalies are quite difficult to spot except in retrospect. c.) Equities markets are only somewhat efficient, and abnormally profitable strategies can usually be uncovered given...