Suppose we have the following data   Demand in period 0: PO = 10 - Q0   Demand in period 1: PO = 10 - QI   In situ stock size = 6   MC of extraction = 2   interest rate = 0   What is the optimal price in period 1 according to the dynamically efficient allocation?   A. 4   B. 8   C. 7   D. 10

Clearly explain the nature of the efficient markets hypothesis (EMH) and clearly distinguish between weak form, semi-strong form, and strong form efficiency. In your answer you should discuss the implications of the three forms of market efficiency for market practitioners.

1.

Match the contribution with the appropriate scholar. Who believed that framing the general equilibrium of the entire microeconomy is better treated one market at a time? v Choose... Modigliani Who is considered the father of Modern Portfolio Theory? Marshall Fisher Who demonstrated why people are either savers or dissavers? Keynes Who provided a general existence proof of a competitive equilibrium? Markowitz Ricardo Who developed the distinction between comparative and absolute advantage? Arrow Hotelling Who first developed a working model of options pricing? Bachelier Smith Who argued that competition in physical space can result in minimum differentiation? Choose... Who determined that, unlike the neoclassical microeconomic theory of equilibrium, we may be in a state of persistent Choose... disequilibrium in the macroeconomy? Who considered the regard by others as an important driver of human behavior? Choose... Who developed a complete Life Cycle Model of spending and saving…