Marx Held That, Ultimately, the Price of a Good or Service

question 113

Multiple Choice

Marx held that, ultimately, the price of a good or service:

• A) equaled a return to labor plus a profit:
• B) was determined by the intersection of demand and supply.
• C) was determined by the competing interests in the marketplace.
• D) equaled wages minus surplus value.

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Definitions:

Payback Cutoff

The maximum allowable period for an investment to recoup its initial cost, beyond which it is not considered.

NPV

Net Present Value; a calculation used to determine the present value of a series of future cash flows, less the initial investment.

Conventional Cash Flow

A pattern of cash flow over time where an initial outlay is followed by a series of positive cash inflows.

Cash Flows

The entirety of cash and cash-equivalent assets being moved into and exiting a company.