The Task of Deciding Which Consumer Gets Each of the Goods

question 49

Multiple Choice

The task of deciding which consumer gets each of the goods produced in a free-market economy is solved by

• A)the price system.
• B)the industries that produce the goods.
• C)the central planners.
• D)citizens with political power.

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Definitions:

Equivalent Annual Payment Bond

A type of bond that pays annual interest payments, calculated to provide a return equivalent to other periodic payment schedules.

EAR

Effective Annual Rate, a measure of interest that takes into account the effects of compounding over a year.

Conversion Value

The financial worth of converting a convertible security, like a bond, into a set number of shares of the issuing company.

U.S. Treasury Note

A marketable U.S. government debt security with a fixed interest rate and a maturity between one and ten years.