In a Populous Market Town Where a Small Number of Merchants

question 10

Multiple Choice

In a populous market town where a small number of merchants and landholders have accumulated wealth, extreme stratification arises. What is the most likely explanation for this?

• A) Wealth is often the accumulation of fixed assets, not cash.
• B) Wealth is often acquired by those who have great skill with money.
• C) The absence of legal controls allowed a small subset of the population to control the market.
• D) The absence of central banks prevented the redistribution of wealth.

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Definitions:

Fixed Cost

Expenses that do not change in total regardless of the level of production or sales activity, such as rent, salaries, and insurance.

Raw Materials

Raw materials are the basic substances or components used in the manufacture or production of goods.

Direct Labour

The labor costs associated with employees who are directly involved in the production of goods or services.

Total Market Value

The aggregate valuation of a company or asset based on current market prices.