Under a Pure Price System, the Decision of Resource Allocation

question 62

Multiple Choice

Under a pure price system, the decision of resource allocation is made by

• A)the head of the government.
• B)a queen or king.
• C)individuals who own the resources.
• D)no one.

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Definitions:

Average Collection Period

The average number of days it takes for a business to collect its receivables from customers.

Quick Assets

Assets that can be converted into cash quickly without significantly affecting their value, such as cash, marketable securities, and accounts receivable.

Debt to Assets Ratio

A financial ratio that indicates the percentage of a company's assets that are provided via debt.

Current Liabilities

Liabilities due within a short period, typically less than a year, that are supposed to be paid out of current assets.