Under a Socialist System

question 104

Multiple Choice

Under a socialist system,

• A) most resources are owned by the state
• B) most resources are shared with the whole community
• C) market prices determine how resources are distributed
• D) conflicts are usually resolved by consensus
• E) most resources are privately owned

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates the stock is more volatile than the market, while a beta less than 1 means it is less volatile.

Yield Curve

A graphical representation of the interest rates on debt for a range of maturities.

Market Risk Premium

The extra return over the risk-free rate that investors require to compensate them for the risk of holding a market portfolio.

Required Return

The minimum rate of return on an investment that investors expect or require to compensate for risks taken.