A Free Market System Tends to

question 114

Multiple Choice

A free market system tends to

• A)produce a fairly equal distribution of income.
• B)pay people exactly what they are worth.
• C)produce a relatively unequal distribution of income.
• D)pay most people more than they are worth, at the expense of reducing firms' profits.

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Definitions:

Investments

Assets or items acquired with the goal of generating income or appreciation over time.

Retirement

The process of leaving one's job and ceasing to work, typically upon reaching a certain age or due to health reasons, often supported by savings, pensions, and Social Security benefits.

Compounded Annually

Interest on an investment or loan that is calculated once a year on both the initial principal and the accumulated interest from previous periods.

Future Value

The value of an investment or cash flow at a specific future date, considering compounding interest or returns.