The Prime Minister of the Nation of Urbania Has Called

question 9

Multiple Choice

The prime minister of the nation of Urbania has called for Urbania's legislature to enact new legislation designed to shift his country away from socialism toward a more capitalistic system.The Prime Minister acknowledges that such a radical change will entail some hardships,and that some citizens will be unhappy with the changes.The most likely source of dissatisfaction with a move toward capitalism is:

• A)Decrease in wealth.
• B)People will have less economic freedom.
• C)Tax rates will have to increase.
• D)A trend toward unequal distribution of wealth.

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Definitions:

Firm No Debt

A business that operates without borrowing money or issuing debt instruments.

Business Risk

The exposure a company or investor faces due to uncertainties in profits or dangers in its industry or economy.

Equity Risk

The risk of loss due to a drop in the value of stocks or equity securities.

Operating Activities

Activities directly related to the day-to-day operations of a business, such as sales, purchasing inventory, and paying salaries.