Some Critics Are Skeptical About the Merits of the Capitalist

question 80

Multiple Choice

Some critics are skeptical about the merits of the capitalist economic system.They point to which of the following as evidence of corruption resulting from the capitalist system?

• A)Economic recessions
• B)Corporate crime
• C)The financial crisis of 2008-2009
• D)Ethical scandals
• E)All of the above are evidence of corruption inherent in the capitalist system.

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Definitions:

Invest

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Cash Flows

The movement of money into and out of a business, project, or investment, critical for assessing financial health.