As a Country Develops More Efficient Institutions,what Happens to Its

question 6

Essay

As a country develops more efficient institutions,what happens to its production function? Explain.

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Definitions:

Date of Record

The specified date when a company determines the owners of its stock to be eligible for a forthcoming dividend or corporate action.

Stock Split

A corporate action that increases the number of shares in a company by issuing more shares to current shareholders, thereby reducing the price per share, without changing the shareholders' equity.

Common Stock Account

An equity account that represents ownership in a corporation and entitles holders to voting rights and dividends.

Retained Earnings Account

An equity account on a company’s balance sheet that represents the accumulated portion of earnings not distributed to shareholders as dividends.