Which of the Following Statements Is Correct

question 65

Multiple Choice

Which of the following statements is correct?

• A) It is paradoxical that people can be made better off by requiring them to do something that they would choose to do voluntarily.
• B) It is paradoxical that people cannot be made better off by requiring them to do something that they would choose to do voluntarily.
• C) Even though none contribute voluntarily, all would agree to be taxed as long as everyone else is also taxed.
• D) Even though everyone contributes voluntarily, none would agree to be taxed if everyone else is not taxed.

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Definitions:

Reacquired Stock

Stock that has been repurchased by the issuing company from shareholders.

Common Stock

Shares representing ownership in a corporation, giving holders voting rights and a claim on a portion of the company's profits through dividends.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often including fixed dividends.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.