Which of the Following Statements Most Accurately Identifies a Limitation

question 266

Multiple Choice

Which of the following statements most accurately identifies a limitation of the free-market economic system?

• A) Free-market economies offer little opportunity for the poor to work their way out of poverty.
• B) Free-market economies have been unable to create wealth as rapidly as other types of economic systems.
• C) Free-market economies are generally plagued by shortages of needed consumer goods.
• D) Free-market economies tend to result in unequal distribution of wealth.

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Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life, representing what it could be sold for or scrapped.

Technologically Obsolete

Refers to products, services, or technology that have become outdated or no longer maintain a competitive advantage due to advancements in technology.

Simple Rate Of Return

A method to evaluate an investment's efficiency by dividing the annual incremental net operating income by the initial investment cost.

Cash Operating Costs

Expenses a company incurs during its day-to-day operational activities that require cash payment.