Which of the Following Was True of Agriculture in the Colonies

question 40

Multiple Choice

Which of the following was true of agriculture in the colonies during the eighteenth century?

• A) It was in decline in the backcountry as compared to coastal areas.
• B) Because New York's landlords had taken over so much land,agriculture grew more slowly in New York than in other colonies.
• C) New England moved away from smaller farming and increasingly toward large-scale farms and plantations.
• D) The standard of living on farms was far lower than it was in Europe.
• E) Farmers in the Middle Colonies had no interest in the market.

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Definitions:

Debt-Equity Ratio

A metric for evaluating a firm's financial leverage, determined by dividing its total debts by the equity held by shareholders.

Cost of Debt

The actual rate a firm incurs on its overall debt, representing the cost of acquiring funds.

Equity Risk

The risk of loss associated with fluctuations in the price of equities or stocks.

M&M Proposition I

A principle in corporate finance that asserts the market value of a firm is unaffected by the capital structure, assuming no taxes and perfect markets.