In a Market Economy, the Distribution of Output Will Be

question 254

Multiple Choice

In a market economy, the distribution of output will be determined primarily by

• A) consumer needs and preferences.
• B) the quantities and prices of the resources that households supply.
• C) government regulations that provide a minimum income for all.
• D) a social consensus as to which distribution of income is most equitable.

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Definitions:

Alternate Dividend Policy

A strategy used by a company to vary its dividend payments to shareholders based on its earnings or investment opportunities.

Stock Dividend

A dividend payment made in the form of additional shares of the paying company's stock rather than cash.

Common Stock Account

An equity account that represents the ownership interest held by common shareholders in a corporation, including its value and dividends.

Capital in Excess of Par

The amount by which the proceeds from the issuance of shares exceed the par value of the shares issued; it's often referred to as additional paid-in capital.