When Competition Is Present and Private Ownership Rights Are Clearly

question 66

Multiple Choice

When competition is present and private ownership rights are clearly defined and securely enforced,

• A) production and trade are encouraged and plunder (taking from others) is discouraged.
• B) people get ahead by helping others in exchange for income.
• C) employers will have to provide prospective employees with at least as good a deal as they could get elsewhere.
• D) all of the above are correct.

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Definitions:

Contract Interest Rate

The pre-determined rate at which interest is calculated on a loan or financial agreement.

Face Value

The original cost of a bond or stock, as indicated on the certificate; it is also known as the nominal or par value.

Above Face Value

A situation where a financial instrument, such as a bond, is traded for more than its original issue price.

Issued Bonds

Debt securities that a company or government has sold to investors to raise capital.