In Theory, What Are Free-Market Economies Based Upon

question 37

Multiple Choice

In theory, what are free-market economies based upon?

• A) The supply of products
• B) The consumption of products
• C) Pure competition
• D) Government policies

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Definitions:

Net Present Value

A method used to evaluate the feasibility of a project or investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Feasible

Refers to an option or action that is possible or practicable within available resources and constraints.

Present Value

The present value of a sum of money or a series of cash flows expected in the future, determined using a particular rate of return.

Interest Rate

The percentage charged on borrowed money or paid on invested capital.