An Economic System Characterized by Private Ownership of the Factors

question 108

Multiple Choice

An economic system characterized by private ownership of the factors of production and economic activity coordinated through a system of markets and prices is called:

• A) capitalism.
• B) socialism.
• C) communism.
• D) none of these.

Understand the rating systems of bonds and their implications on investment risk and return.

Identify and describe different types of bonds and their unique features.

Calculate yield-to-maturity and current yield for different bonds.

Understand the concepts of bond pricing, including factors influencing bond prices.

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Definitions:

MRP

MRP stands for Marginal Revenue Product, which is the additional revenue generated from employing one more unit of a factor of production, such as labor or capital.

Nonunionized

Workplaces or employees that are not part of a labor union and do not engage in collective bargaining.

Efficiency Wages

Wages that are deliberately set above the market equilibrium level by employers to increase productivity and efficiency among employees.

Below-equilibrium

A situation where the quantity demanded exceeds the quantity supplied at a given price.