The Way That a Society Uses to Allocate Resources to Satisfy

question 58

Multiple Choice

The way that a society uses to allocate resources to satisfy human wants is called

• A) an economic system.
• B) an assumption.
• C) realism.
• D) a physical science.

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Definitions:

Forward Contract

An agreement to buy or sell an asset at a future date for a price agreed upon today, without the standardization of futures contracts.

Exchange Rate Risk

The potential for investors to experience losses due to changes in the exchange rate between two currencies.

Short-term

This term usually refers to a period of time less than one year, often used in the context of finance for investments or liabilities.

International Fisher Effect

An economic theory that suggests that the difference in nominal interest rates between two countries is directly proportional to the expected change in the exchange rate between their currencies.