Which of the Following Is a Key Characteristic of Economic

question 15

Multiple Choice

Which of the following is a key characteristic of economic freedom?

• A)institutions and policies supportive of voluntary exchange
• B)freedom to compete
• C)protection of people and their property from aggressors
• D)all of the above

---

Definitions:

Minimum Required Rate Of Return

The lowest return on investment that a person or organizational entity, like a company, would accept for a given investment.

Stockholders' Equity

Represents the owners' claim after subtracting total liabilities from total assets; it consists of initial capital investment, retained earnings, and additional paid-in capital.

Net Operating Income

The income that comes from a firm's primary business activities, not including the subtraction of interest and taxes.

Average Operating Assets

The average value of the assets involved in the daily operations of a business over a specific period, used to measure efficiency.