Which of the Following Is a Question Answered with Positive

question 23

Multiple Choice

Which of the following is a question answered with positive economic analysis?

• A) Should the college offer free parking for students?
• B) Should the college provide more financial aid assistance?
• C) If the college increased tuition, will class size decline?
• D) Should the college cut tuition to stimulate enrollment?

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Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities.

Changes in Equity

Movements in the value of an entity's equity over a period due to profits, losses, contributions from or distributions to owners.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but retained by the company for reinvestment.

Dividends Declared

The announcement by a company's board of directors of the intention to pay a dividend to shareholders, indicating the amount and payment date.