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Economics
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Real estate market inefficiency:

a. Briefly describe 5 factors that cause the stock market to be more efficient than the real estate market.

b. Can investors make money in an efficient market? Briefly explain.

c. Do educate and informed investors rather operate in an efficient or inefficient market? Briefly explain.

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Darryn D'Souza
Darryn D'SouzaLv10
28 Sep 2019
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Related questions

Considering three different forms or levels of market efficiency. Refer to the appropriate forms of market efficiency in answering the following questions:

a) Why is insider trading illegal?

b) Why and how do small investors benefit from efficient markets?

c) If you were a stock trader and markets were not efficient, how would this influence your trading activity? What does this tell you about why markets may be efficient?

d) Consider the case of a day trader who looks only at the past history of stock prices in conducting his or her trades. How likely would it be for such a person to beat the market? What does this suggest about investing in the "entire market" (such as by purchasing shares in an index fund) rather than attempting to pick individual stocks?

1. A monopolist produces

a. More than the socially efficient quantity of output but at a higher price than in a competitive market.

b. Less than the socially efficient quantity of output but at a higher price than in a competitive market.

c. The socially efficient quantity of output but at a higher price than in a competitive market.

d. Possibly more or possibly less than the socially efficient quantity of output, but definitely at a higher price than in a competitive market.

Ā 

2. A perfectly competitive market

a. It May not be in the best interests of society, whereas a monopoly market promotes general economic well-being

b. Promotes general economic well-being, whereas a monopoly market may not be in the best interests of society.

c. And a monopoly market are equally likely to promote general economic well-being.

d. Is less likely to promote general economic well-being than a monopoly market.

Ā 

3. Deadweight loss

a. Measures monopoly inefficiency.

b. Exceeds monopoly profits.

c. Equals monopoly profits.

d. Equals monopoly revenues minus profits.

Ā 

What was john Rawl's proposal in his book entitled a theory ofjustice?
a. rich people should not be taxed
b. a good goal for society is to attempt to make the poorest aswell off as possible
c. unfairness results from the rules of a game
d. efficient resource use is the only thing that matters

what can cause a market to produce an inefficient quantity of agood?
a. a monopoly
b. an external cost or an external benefit
c. a public good that is consumed by everyone simultaneously
d. all of the answers can result in inefficiency.

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