If stockholders allow the company to reinvest its profit, then
a. they will be personally liable for additional debts
b. the company's stock price will rise
c. the company's assets will decline
d. these dividends will be distributed to the stockholders
e. these profits can only be used to purchase equipment
B
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Suppose we observe that both the equilibrium price of film cameras and the equilibrium quantity of film cameras have fallen. Which of the following could be responsible for this?
A) Consumers' preferences changed in favor of digital cameras. B) technological advances in film camera production C) Workers who make cameras received a pay raise. D) The price of digital cameras increased.
Suppose that in a certain market there is an increase in demand, but the market price does not quickly adjust to a new equilibrium price. What situation will exist in this market until the price adjusts?
A. Excess demand, because the market price is higher than the equilibrium price B. Excess supply, because the market price is higher than the equilibrium price C. Excess demand, because the market price is lower than the equilibrium price D. Excess supply, because the market price is lower than the equilibrium price.
Recall the Application about the effects of increasing state level Earned Income Tax Credit (EITC) on child health in the United States to answer the following question(s).Recall the Application. According to the study cited in the Application, does EITC improve income distribution?
A. Yes, aside from increasing income for low-income households, it improves the health levels of the worker and their families. B. Yes, EITC encourages workers to sop working and get an education in the health industry. C. No, only the politicians get rich because of EITC. D. No, the level of spending on EITC is so low it has no measurable effects on incomes of the poor.
Of the following countries, which has the highest level of inequality with respect to disposable income?
A. Chile B. Spain C. Norway D. Germany