Which of the Following Statements About Capital Markets Is True

question 120

Multiple Choice

Which of the following statements about capital markets is true?

• A)The United States capital market is currently larger than all other capital markets combined.
• B)At one time, the United States capital market was larger than all other capital markets combined, but this is no longer the case.
• C)There are currently large capital markets in Europe, but none in Asia.
• D)The largest capital markets in the world today are in East Asia and South America.

---

Definitions:

MC

Stands for Marginal Cost, which is the cost incurred by producing one additional unit of a good or service.

Output

The quantity of goods or services produced within a given time period by a firm, sector, or economy.

U-Shaped Marginal Cost

A graphical representation of the cost incurred to produce one more unit of a good, which decreases at first due to increasing returns but eventually increases due to decreasing returns.

Profit-Maximizing Output

The quantity of output at which a firm achieves the maximum possible profit, determined where marginal revenue equals marginal cost.