One Measure of the Importance of a Publicly Traded Asset

question 16

Multiple Choice

One measure of the importance of a publicly traded asset class in the U.S. economy can be calculated by multiplying the number of publicly traded shares by the current market price of the stock. The result of this calculation is more commonly referred to as:

• A) market capitalization
• B) capitalization rate
• C) price-earnings ratio
• D) earnings-per-share ratio

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Definitions:

Elasticity Of Supply

A measure of how much the quantity supplied of a good changes in response to a change in its price.

Tax Revenue

It's the income that is collected by governments through taxation.

Excise Tax

A tax on specific goods, such as alcohol and tobacco, typically imposed at the point of manufacture or sale.

Total Tax Revenue

The total amount of money collected by the government from taxes, which can come from various sources like income taxes, sales taxes, and corporate taxes.