For Our Historical Comparison Purposes,how Are Large-Company Stocks Defined

question 63

Multiple Choice

For our historical comparison purposes,how are large-company stocks defined?

• A)Stocks of the lowest 20 percent of the firms listed on the NYSE based on market capitalization
• B)Stocks with average annual returns that exceed the average annual return of the U.S.Treasury bill
• C)Any firm that has been listed on the NYSE for 40 years or more
• D)Stocks of firms included in the S&P 500 composite index
• E)Stocks of firms that employ over 5,000 employees

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus, representing the total benefit to society from the production and trade of goods and services.

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay; a measure of consumer benefit.

Producer Surplus

The difference between the amount a producer is actually paid for a good compared to the minimum amount they would accept for the good.

Excess Supply

A market condition where the quantity of a commodity available for sale exceeds the quantity demanded at the current price.