All of the Following Economic Environment Factors Affect Stock Prices

question 12

Multiple Choice

All of the following economic environment factors affect stock prices except:

• A)investment strategies
• B)competition
• C)tax rates
• D)currency exchange rates

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Definitions:

Marginal Cost

The amount of money spent to manufacture one additional unit of a product or service.

Adam Smith

Was an 18th-century Scottish economist and philosopher, known as the "father of modern economics" for his influential work on the nature and causes of the wealth of nations.

Economies of Scale

Cost advantages that enterprises obtain due to scale of operation, with cost per unit of output decreasing with increasing scale.

Marginal Output

Refers to the additional output that results from using one more unit of a production input, such as labor or capital, in the production process.