Which of the Following Is Not a Likely Result in a Market

question 173

Multiple Choice

Which of the following is not a likely result in a market system?

• A) Consumers increase their marginal profit.
• B) Prices tend to be low.
• C) Resources tend to be used where they are most valued.
• D) Inefficient firms do not last.
• E) Inefficiency does not last.

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Definitions:

Corporate Earnings And Profits

The measure of a corporation's ability to generate income over its costs and expenses within a specific period.

Return Of Capital

A payment to investors that returns some of their original investment, thus reducing the investor's cost basis in the investment.

Capital Gain

The profit earned from the sale of an asset that has increased in value over its purchase price, often applied to stocks, bonds, and property.

Stockholder Basis

The amount invested in a company's stock, used for tax purposes to determine gain or loss on the sale or disposition of the stock.