McDonald's Introduced the "Big Mac" in 1968 and It Turned

question 101

Multiple Choice

McDonald's introduced the "Big Mac" in 1968 and it turned out to be a hit, but the "Arch Deluxe" introduced in 1996 was not. The success or failure of a product in the market system is determined by:

• A) Capitalism and entrepreneurship
• B) Specialization and exchange
• C) Consumer sovereignty and dollar votes
• D) Capital goods and roundabout production

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Definitions:

Common Stock Account

An equity account representing the ownership interest of common shareholders in a company.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders.

Share Split

A business move where a company splits its current shares into additional ones to increase the shares' marketability.

Share Price

The current market price of a single share of a company's stock.