In What Type of Economy Are Exchanges Controlled by Marketplace

question 32

Multiple Choice

In what type of economy are exchanges controlled by marketplace forces of supply and demand, rather than outside forces such as government control?

• A)consumer economy.
• B)controlled economy.
• C)market economy.
• D)command economy.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; also known as shareholders' equity.

Retained Earnings Statement

A financial report detailing the modifications in accumulated profits over a certain timeframe.

Prior Period Adjustments

Corrections of errors in financial statements of prior periods or adjustments for omitted transactions.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, often with fixed dividends.