In the Long Run, a Drought That Destroys Most of a Summer's

question 100

Multiple Choice

In the long run, a drought that destroys most of a summer's wheat crops would cause permanently:

• A) higher prices.
• B) lower output.
• C) lower prices.
• D) None of these are true.

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Definitions:

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in a given year, and must be paid out before any dividends on common stock.

Capital Stock

The amount of shares that a company's shareholders have purchased and own, representing ownership in the company.

Dividend

A share of the profits paid to shareholders of a corporation, usually distributed in cash or additional stocks.

Commission Charges

Fees charged by brokers or agents for their services in facilitating transactions.