Match the Following Terms with Their Definitions

question 121

Multiple Choice

Match the following terms with their definitions.
-Price-earnings ratio

• A)Bond sells for more than face value
• B)Symbol of stock
• C)Total interest divided by total cost
• D)Dividend in arrears is paid before common price
• E)What shares are quoted in
• F)Dividend per share divided by closing price
• G)No sales charge
• H)Price per share divided by earnings per share
• I)Payment to stockholder
• J)A type of stock
• K)Dollar value of one share of a mutual fund
• L)Denominations of $1,000

---

Definitions:

Cost Minimization

A strategy employed by businesses to reduce production or operational costs to the lowest possible level without sacrificing quality or output.

Marginal Cost

The cost implicated in generating an added unit of a product or service.

Efficient Allocation

The distribution of resources in a way that maximizes the net benefit received by an economy.

Allocative Efficiency

A state of the economy where resources are apportioned in a way that maximizes the overall benefit to society.