________ Increases Economic Efficiency Because It Forces Firms to Produce

question 83

Multiple Choice

________ increases economic efficiency because it forces firms to produce and sell goods and services as long as the additional benefit to consumers is greater than the additional cost of production.

• A)Competition
• B)Voluntary exchange
• C)Equity
• D)A centrally planned economy

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Definitions:

Maturity

The specific day when the core sum of a financial product, like a bond or loan, must be paid back to the investor.

Semiannually

Occurring twice a year; every six months.

Zero-coupon Bond

A type of bond that does not pay interest during its life; it is sold at a discount from its face value and the return is realized when the bond matures.

Deep Discount

A situation where a bond or other investment is sold significantly below its par or face value.