A Perfectly Competitive System Results in an Efficient Allocation of Resources

question 106

True/False

A perfectly competitive system results in an efficient allocation of resources among firms and an equal distribution of final products among households.

---

Definitions:

Statement Of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives from its operational, investing, and financing activities.

Cash Equivalents

Assets readily convertible to a known cash amount within a short period, typically 90 days.

Financing Activities

Transactions and events that affect long-term liabilities and equity of a company, including issuing debt, obtaining loans, or issuing and selling equity securities.

Interest Expense

The financial charge an organization incurs over time for borrowing funds.