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.

---

Definitions:

Future Cash Flows

Projected movement of money into and out of a business, essential for budgeting, financial planning, and investment analysis.

Future Cash Flows

The projected cash receipts and payments a company expects to incur over a certain period in the future.

Bond Ratings

Bond ratings are assessments made by credit rating agencies about the creditworthiness of a bond issuer, which affect the interest rates bonds carry.

Default Risk

The risk that a borrower fails to make the promised loan or bond repayments to the lender or bondholders.