The Change Reflected in the Above Figure Might Be a Result

question 21

Multiple Choice

The change reflected in the above figure might be a result of

• A)a decrease in the money prices of resources other than labor.
• B)an increase in the quantity of labor.
• C)a fall in the price level.
• D)a decrease in the quantity of capital.
• E)a rise in the money wage rate.

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Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Market Price

The current price at which an asset or service can be bought or sold on the open market.

Retained Earnings

The part of net profits not distributed as dividends, instead kept by the company for reinvesting in its main business operations or for debt repayment.