The Guiding Function of Prices Tends to Keep Resources Flowing

question 135

True/False

The guiding function of prices tends to keep resources flowing toward their most highly valued uses.

---

Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from revenues.

Weighted Average

A calculation that takes into account the varying weights of items in a dataset, often used in accounting to compute inventory values.

Common Shares

Equity investments representing ownership in a corporation, granting holders voting rights and a share in the company's profitability.

Earnings Per Share

A financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock.