Which of the Following Best Explains Why Market Prices Are

question 16

Multiple Choice

Which of the following best explains why market prices are useful to a financial manager when performing a cost-benefit analysis?

• A) They can be used to determine how much an asset can be sold for.
• B) They can be used to convert different services and commodities into equivalent cash values which can be compared.
• C) They allow all commodities and services to be assigned a fixed and unchanging value.
• D) They can be evaluated to determine whether the market in which the manager exchanges goods and services offers true value.

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Definitions:

Visual Accommodation

The automatic adjustments made by the lenses of the eyes to bring objects into focus.

Classical Conditioning

An educational technique involving the repetitive pairing of two stimuli, which results in a reaction initially caused by the second stimulus, being eventually provoked by just the first stimulus.

Neonate

Newborn baby, particularly within the first 28 days of life outside the womb.

Blink

A rapid closing and opening of the eyelid, which is a reflex action protecting the eye from irritants and helping to spread tears over the surface of the eye.