The System That Came to Be Known as the "Cottage

question 118

Multiple Choice

The system that came to be known as the "cottage industry" involved all except

• A)the purchase, by an entrepreneur, of the raw materials needed for textile production.
• B)country laborers producing yarn and cloth.
• C)the selling of finished products by an entrepreneur.
• D)peasants grew cotton on their farms and sold the raw material to entrepreneurs.
• E)it was also known as the "putting-out" system.

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Definitions:

Informationally Efficient

The concept where a market is said to be informationally efficient if all relevant information is fully and immediately reflected in a security's market price.

Allocationally Efficient

Refers to a market scenario where resources are distributed in a way that maximizes the benefits to all participants, considering their preferences and needs.

Random Walk

A theory suggesting that stock market prices evolve according to a random path, making it impossible to consistently predict future movements based on past trends.

Stock Price Changes

Variations in the market price of a company’s stock over time.