Figure 10-1 ​

question 103

Multiple Choice

Figure 10-1
​
-If the price level in Figure 10-1 were 120,

• A)there would be excess goods on the market.
• B)firms would have to raise their prices.
• C)inventories would be disappearing.
• D)aggregate quantity demanded would exceed aggregate quantity supplied.

---

Definitions:

Subscription Receivable-common Stock

Subscription receivable-common stock refers to the amount due from subscribers who have agreed to purchase common stock but have not yet paid.

Stock Subscription Plan

A mechanism for employees or investors to buy shares of a company's stock, often at a discount.

Paid in Capital

The portion of the shareholders' equity that represents the amount investors have put into the company by purchasing shares directly from the company.

Common Stock

Represents ownership shares in a corporation, providing voting rights and a residual claim on corporate earnings in the form of dividends.