When the Government Hires People to Serve in the Army

question 394

Multiple Choice

When the government hires people to serve in the army, these people are no longer available to do other work. This choice illustrates the concept of

• A) opportunity cost.
• B) an incentive.
• C) a social interest/private interest conflict.
• D) marginal benefit.

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Definitions:

Preferred Dividends

Dividends that are paid out to preferred shareholders before any dividends are distributed to common shareholders, typically at a fixed rate.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in cash.

State Corporation Laws

Regulations established by individual states governing the formation, operation, and dissolution of corporations within their jurisdiction.

Comprehensive Income Items

Components of comprehensive income that represent all changes in equity during a period except those resulting from investments by owners and distributions to owners.