Under a Capitalist Economic System

question 100

Multiple Choice

Under a capitalist economic system,

• A) the state owns all or most of the resources
• B) people are forced to work for a living
• C) resources are privately owned
• D) the government determines the allocation of resources
• E) prices eventually become unnecessary

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Definitions:

Fair Market Value

The cost at which an asset would be sold in an open market scenario, involving a buyer and a seller who are both willing to transact and are well-informed about the essential details.

Goodwill

An intangible asset that arises when a company acquires another for a price higher than the fair value of its net identifiable assets.

Fair Values

The monetary amount expected from selling an asset or required to cover a liability, in a well-organized deal among market stakeholders, at the time of assessment.

Control

The power to govern the financial and operating policies of an organization so as to obtain benefits from its activities.