In a Free Market, the Price of a Good Is

question 69

Multiple Choice

In a free market, the price of a good is equal to:

• A) whatever a central planner deems the good to be worth.
• B) the good's value when employed in its highest-valued use.
• C) the good's value if employed in its next highest-valued use.
• D) whatever the central planner deems the good to be worth plus a "reasonable markup."

---

Definitions:

Fixed-Income Portfolios

Investment portfolios that consist primarily of debt securities like bonds, which are designed to provide a fixed return through interest payments to investors over time.

Actively-Managed

A strategy where a fund's investments are frequently adjusted by a manager or management team in an attempt to outperform the market.

MSCI France Index

An index designed to measure the performance of the French equity market, representing large and mid-cap segments.

Diversified Portfolio

A mix of various types of investments (stocks, bonds, commodities, etc.) aiming to reduce risk through diversification.