The Chapter Asserts That the Primacy of Profits in Capitalism

question 28

Multiple Choice

The chapter asserts that the primacy of profits in capitalism means that employers make investment decisions without regard for their employees. Which of the following does NOT represent that situation?

• A) Employers purchase machines to replace workers on an assembly line.
• B) Employers require workers to participate in on-the-job training.
• C) Owners close a factory in the United States and move their operations overseas to a low-wage country.
• D) Employers eliminate traditional pension plans in favor of employee-funded 401K retirement plans.

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Definitions:

Bond Portfolios

Collections of bonds held by investors or institutions, designed to achieve certain financial goals while managing risk and return.

Indexing

The investment strategy of replicating the performance of a market index, often through passive fund management.

Duration

A measure of the sensitivity of the price of a bond or a fixed income portfolio to changes in interest rates.

Interest-Rate Risk

The possibility of incurring losses in investments as a result of variations in interest rates, especially impacting fixed-income securities.