The Term Market Mechanism Refers to

question 44

Multiple Choice

The term market mechanism refers to

• A)The use of market prices and sales to determine resource allocation.
• B)The establishment of a ceiling price in a market.
• C)Supply curves but not demand curves.
• D)Government laws and regulations concerning how the market should operate.

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Definitions:

Bonds Payable

Long-term liabilities represented by bonds that a company must repay to investors at a specified maturity date.

Cash Dividends

Payments made by a company out of its profits to its shareholders in the form of cash.

Common Stock

A type of security that signifies holding an ownership stake in a corporation, reflecting corporate equity possession.