What Is a Primary Market

question 44

Multiple Choice

What is a primary market?

• A)a market where primary inputs like steel are sold
• B)a market where you can sell any bonds you own as a private investor
• C)a market where a newly issued claims are sold to initial buyers by the borrowing firm
• D)a market where you can sell any stocks you own as a private investor

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Definitions:

Economic Decisions

Choices made by individuals, households, firms, or governments regarding allocation of scarce resources to satisfy various needs and desires.

Tax Revenue

Tax Revenue refers to the income that is gained by governments through taxation, which is then used to fund public services and governmental operations.

Excess Burden

The additional cost to society beyond taxes collected resulting from inefficiencies in market outcomes due to taxation or regulations.

Tax Revenue

Funds accumulated by governments as a result of taxation.