When a corporation uses profits to pay for the purchase of new capital equipment, this is known as
A) reinvestment.
B) a coupon payment.
C) dividend.
D) collusion.
A
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If you pay $400 in taxes when you earn $10,000 and $600 in taxes when you earn $12,000, you are subject to a marginal tax rate of
A) 4%. B) 5%. C) 6%. D) 8%. E) 10%.
Because incomes are limited, purchasing one thing means not being able to purchase other things. This indicates that:
a. marginal utility diminishes. b. marginal utility is constant. c. people will allocate their income among goods so as to achieve the most satisfaction. d. people will allocate their income among goods so that the marginal utilities of all goods is equal. e. people will allocate their income among goods so that the marginal utilities of all goods is zero.
What is an example of a barter system?
What will be an ideal response?
An example of a trade-off is
a. giving up going to a movie to spend time shopping b. giving up going to a movie because it got bad reviews c. going to a movie to see your favorite movie star d. not going to a movie because your wife isn't feeling well