Which of the Following Should Be True for an Asset

question 82

Multiple Choice

Which of the following should be true for an asset to be considered liquid?

• A) It pays regular dividends.
• B) It can be bought and sold at an organized stock market or bourse.
• C) It is offered for sale on both primary and secondary markets.
• D) It can be easily bought and sold and the selling price is very close to the buying price at a given point in time.

---

Definitions:

Inelastic

Describing demand or supply that is relatively unresponsive to price changes, meaning the percentage change in quantity is less than the percentage change in price.

Zero Production Costs

The hypothetical situation in which a good or service can be produced with no expenditure or effort, leading to an unlimited supply.

Profit-Maximizing Monopolist

A monopolist that sets its output and price levels to achieve the highest possible profit, given its unique position as the sole supplier in the market.

Demand Schedule

A chart or table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices.