Which of the Following Statements Is True

question 61

Multiple Choice

Which of the following statements is true?

• A) A consumer's buying decisions do not indicate anything about her tastes and preferences.
• B) A consumer's demand for a good determines the price of the good in a perfectly competitive market.
• C) The relative prices of goods do not affect a consumer's buying decision.
• D) A consumer in a perfectly competitive market buys only a tiny fraction of the total amount produced.

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Definitions:

Common Stock

A type of security representing ownership in a corporation, giving holders a share of the company’s profits via dividends.

Additional Assets

Assets acquired by a company beyond its existing assets, often to expand operations or diversify holdings.

Short-Term Debt

Refers to financial obligations that are due for repayment within one year.

Debt/Equity Ratio

The metric that specifies how a company allocates equity and debt in the financing of its assets.