The Price System

question 51

Multiple Choice

The price system

• A) automatically distributes scarce goods.
• B) is inefficient.
• C) requires government help to allocate goods.
• D) is the only way to allocate goods.

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Definitions:

Percentage of Sales

An approach used to forecast the future financials of a company based on its current sales data and growth assumptions, commonly used in financial modeling.

Dividend Policy

A company's stance on distributing profits back to its shareholders either in the form of dividends or stock repurchase.

Full Capacity

The utmost production capacity a firm can maintain over a certain period under typical situations.

Financial Planning

The process of setting financial goals, policies, procedures, and programs to guide the acquisition, use, and management of financial resources over time.