In the Context of the Fundamental Principles of a Free

question 60

Multiple Choice

In the context of the fundamental principles of a free market system, which of the following statements is true of the equilibrium price?

• A) It refers to the price at the point where the supply curve and the demand curve intersect.
• B) It is the price at which a seller breaks even.
• C) It is the point at which the final cost of production equals the price of the raw materials used for a product.
• D) It refers to a situation where the cost price of a product is equal to its selling price.

---

Definitions:

In Writing

A term indicating that a document or agreement has been formally recorded on paper or in a digital format rather than merely agreed upon orally.

Contract of Employment

A formal agreement between an employer and an employee outlining terms of employment, duties, and rights.

Fixed Period

A set duration of time with defined beginning and end points, often used in contracts, rentals, or employment agreements.

Terminable

Referring to something such as an agreement or contract that can be ended or terminated by one or more of the parties involved.