By Free Enterprise, We Mean That

question 116

Multiple Choice

By free enterprise, we mean that:

• A)products are provided free to those who can't afford to buy them.
• B)individual producers determine how to produce, but government agencies determine what will be produced.
• C)individuals may obtain resources, organize production, and sell the resulting output in any legal way they choose.
• D)individuals are free to produce those products that government agencies determine can be produced profitably.

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Definitions:

Time-Weighted Return

A method to measure the rate of return of an investment portfolio which eliminates the distorting effects of inflows and outflows of money.

Dividend

Dividend represents the distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Share

A unit of ownership in a company or financial asset, often traded on a stock exchange.

Arithmetic Average Return

The simple average of a series of returns over a period of time, calculated by summing the returns and dividing by the number of periods.