Refer to the Table

question 113

Multiple Choice

Refer to the table. If government adopts a price support program that sets the price at $7, then the total amount that government will pay to farmers of this product is

• A)$980.
• B)$560.
• C)$180.
• D)$1,540.

---

Definitions:

Share Repurchases

It refers to the process where a company buys back its own shares from the marketplace, reducing the amount of outstanding shares.

Cash Dividend

A direct payment of profits from a company to its shareholders, typically in the form of cash.

Capital Gains Tax

A tax on the profit realized on the sale of a non-inventory asset that was greater than the amount realized on the sale.

Dividends

Payments made to shareholders out of a company's profits, usually on a quarterly basis, representing a portion of the company’s earnings distributed to its stockholders.