Unlike the Real World, the Classical Model with Fixed Output

question 47

Multiple Choice

Unlike the real world, the classical model with fixed output assumes that:

• A)capital and labour are fully utilized.
• B)all capital is fully utilized, but some labour is unemployed.
• C)all labour is fully employed, but some capital lies idle.
• D)some capital lies idle, and some labour is unemployed.

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Definitions:

Majority Owner

A majority owner refers to an individual or entity that holds more than 50% of a company's shares, thereby having significant control and decision-making power within the company.

Board of Directors

A group of individuals elected to represent shareholders and make major decisions concerning the corporation, including company policy, and director oversight.

Preferred Shares

Preferred shares represent ownership in a company with preferential rights to dividends and assets upon liquidation, compared to common shares.

Doctrine of Ultra Vires

A principle stating that actions taken by a corporation that are beyond its legal power or authority are invalid.