Economists Use a Resource's Price as an Indicator of Its

question 166

True/False

Economists use a resource's price as an indicator of its relative scarcity.

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Definitions:

Closely Held

A business that is privately owned, typically with a small number of shareholders, and not publicly traded on stock markets.

Shareholders

Individuals or entities that own one or more shares of stock in a public company, making them partial owners of that company.

IPO

Initial public offering. Stock in a new company offered to the public for the first time. Such stock tends to make a volatile, high-risk investment.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are managed by professional investment managers.