Exhibit 29-2 -According to the Data in Exhibit 29-2, the Relative Price

question 60

Multiple Choice

Exhibit 29-2
-According to the data in Exhibit 29-2, the relative price of computers and rice for Japan is

• A)1/2 computer per unit of rice.
• B)1 computer per 4 units of rice.
• C)1/4 computer per unit of rice.
• D)4 computers per unit of rice.
• E)2 computers per unit of rice.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, giving shareholders voting rights and a share in profits.

Retained Earnings

The portion of a company's profits that is held back and not distributed to shareholders, reinvested in the business.

Net Income

The net income a company earns once all costs and taxes are subtracted from its total revenues.

Dividend

A portion of a company's earnings distributed to its shareholders, typically paid out in cash or additional shares of stock.