An Economic System That Relies Primarily Upon Custom and Habit

question 10

Multiple Choice

An economic system that relies primarily upon custom and habit in economic decision making is a

• A)mixed system.
• B)market system.
• C)traditional system.
• D)communist system.
• E)command system.

---

Definitions:

Fair Value

Fair Value refers to the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Consolidated Balance Sheet

A balance sheet that aggregates the assets, liabilities, and shareholders' equity of a parent company and its subsidiaries, presenting the financial position of the entire group.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, essentially representing the owners' claim on the company.

Book Value

The net value of a company's assets found on its balance sheet, calculated as total assets minus intangible assets and liabilities.