A ________ Is an Economic System in Which Individuals and Companies

question 55

Multiple Choice

A ________ is an economic system in which individuals and companies are largely free to decide what products to produce,how to produce them,whom to sell them to,and at what price to sell them.

• A) planned system
• B) regulated economy
• C) socialist economy
• D) free-market system
• E) communist economy

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Definitions:

Noncash Assets

Assets that are not in the form of cash or cannot be easily converted into cash, such as real estate, equipment, or inventory.

Noncash Assets

Assets that cannot be easily converted into cash, including property, plant, equipment, patents, and trademarks.

Gain or Loss

The financial result of transactions that leads to an increase (gain) or decrease (loss) in the capital of an entity, not related to its primary operations.

Capital Balances

The amount of funds that each partner or shareholder has contributed to a company, not including any profits or losses retained in the company.