Which of the Following Observations Is True

question 248

Multiple Choice

Which of the following observations is true?

• A)Free markets will achieve all of society's goals.
• B)The ability to buy goods is divided equally among consumers.
• C)The market deals with efficiency in production through the profit motive.
• D)The market system encourages firms to use inputs wastefully.

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Definitions:

New Equity

New equity refers to funds raised by a company through the issuance of new shares in the equity market.

Interest Expense

The cost incurred by an entity for borrowed funds, often expressed as an annual rate.

Long-Term Debt

Borrowings that are due for repayment in more than one year's time, used to finance a company's operations beyond its immediate needs.

Marginal Tax Rates

The rate at which the last dollar of income is taxed, reflecting the percentage of tax applied to your income for each tax bracket in which you qualify.