Economists Use a Formal Definition of Market That Includes Two

question 49

True/False

Economists use a formal definition of market that includes two conditions: first, the potential sellers of a good come into contact with potential buyers, and second, that a medium of exchange is available.

---

Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

Equity Method

An accounting technique used to record investments in associate companies, reflecting the investor’s share of the investee’s profit or loss.

Stock Investments Account

An account that records the purchase price and subsequent value of stock investments owned by an individual or a company.

Dividends

Money given out to shareholders by a business, often coming from the profits made by the company.