Which Statement Is True

question 103

Multiple Choice

Which statement is true?

• A)Frank Knight believed that capital is surplus value that has been stolen from the worker.
• B)Joseph Schumpeter believed that risk-bearing is no part of the entrepreneurial function.
• C)Karl Marx believed that profits were the capitalist's reward for innovation.
• D)None of the statements are true.

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Definitions:

Price/Earnings Ratio

A measure used in finance that compares the current price of a company's stock to its per-share earnings, indicating the market's expectations of the company's future earnings growth.

Inflation Rate

The speed at which the average cost of products and services increases, reducing the buying power.

Risk Averse

A tendency to prefer options that have fewer risks and more certain outcomes.