Prices Can Work to Benefit the Public Interest by

question 152

Multiple Choice

Prices can work to benefit the public interest by

• A)raising corporate profit levels.
• B)improving the fairness of the distribution of income.
• C)allowing government to regulate the economy.
• D)allocating scarce resources to those who value the resource the most.

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Definitions:

365-Day Year

A calendar basis used in various financial calculations, assuming the year consists of exactly 365 days for simplifying interest and other time-sensitive computations.

Temporary Working Capital

The additional working capital needed to support fluctuations in business activity during peak periods.

Short-Term Debt

Liabilities or loan obligations that are due to be paid within a year.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers for goods or services sold on credit.