An Increase in the Value That Future Consumers Are Expected

question 79

Multiple Choice

An increase in the value that future consumers are expected to place on an exhaustible resource ________ the marginal cost of extraction and ________ the current price of the resource.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) does not change; does not change

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Definitions:

Par-value Share

A stock with a face value as specified in the corporate charter beyond which it cannot be sold upon initial offering.

Non-par-value Share

Shares issued without a nominal or face value, with their selling price determined by the market or by the issuing company.

Distinguish

To recognize or treat as different; to make a clear separation between two or more things.

Share

The means of acquiring funds from a large number of sources to run a corporation; an interest in a corporation held by an investor.