A Market System Tends to Restrict Business Risk to Owners

question 45

Multiple Choice

A market system tends to restrict business risk to owners and investors.This results in which of the following benefits?

• A) A more stable macroeconomy with fewer recessions.
• B) Firms are better able to attract inputs,as these inputs do not have to share the risk.
• C) Government agencies are better prepared to help when businesses fail.
• D) Consistently lower prices for consumers.

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Definitions:

Workforce Size

The total number of employees, both full time and part time, engaged in an organization or available in the market.

Equipment Used

Equipment used refers to the tools, machinery, and devices employed in the execution of a specific task or operation.

Productivity

The measure of how efficiently production inputs, such as labor and materials, are converted into outputs, or goods and services.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a given period of time.