A Stock Issued by a Corporation That Has the Potential

question 61

Multiple Choice

A stock issued by a corporation that has the potential of earning above-average profits when compared to other firms in the economy is called a(n) ________ stock.

• A)defensive
• B)cyclical
• C)growth
• D)income
• E)blue chip

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Definitions:

Real Income

The income of an individual or group after adjusting for inflation, reflecting the true purchasing power of the income.

Bureau Of Labor Statistics

A U.S. government agency responsible for collecting, analyzing, and distributing essential statistical data related to labor market activity, working conditions, and price changes in the economy.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, typically used as an indicator of inflation.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, used as a key indicator of the labor market's health.