It Is Essential to Establish Specific Criteria to Judge the Performance

question 26

Multiple Choice

It is essential to establish specific criteria to judge the performance of any economic system. One such criterion is

• A) efficiency.
• B) profit opportunity.
• C) technological progress.
• D) achieving general equilibrium.

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Definitions:

Discount

A reduction in the price of a good or service, typically to encourage purchase.

Cash Interest

The actual amount of interest paid in cash by a borrower during a given period for the use of borrowed funds.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments due on any type of debt for a specific period.