Which of the Following Is an Assumption of the Market

question 36

Multiple Choice

Which of the following is an assumption of the market capitalism model?

• A) Government intervention in economic life is significant.
• B) Individuals can own private property and freely risk investments.
• C) Consumers have limited knowledge about products and prices.
• D) Limited information prevents individuals from making completely rational decisions.

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Definitions:

U.S. Dollars

The official currency of the United States, widely used for international transactions.

Future Rate

An expected rate for a financial instrument or an economic variable at a specified future date.

Fixed Exchange Rate

A government policy to maintain the value of its currency at a set rate against another currency or a basket of currencies.

Covariance

A measure used in statistics to determine how much two random variables change together, indicating the direction of their linear relationship.