Using Economic Analysis to Help Understand World Issues

question 40

Multiple Choice

Using economic analysis to help understand world issues

• A) assumes that all decision makers use detailed economic analysis
• B) highlights the role of choice when resources are scarce
• C) has unlimited application
• D) is not appropriate because reality is too complex for economic modeling
• E) typically enables one nation to gain only when another nation loses

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Resold

A term referring to items that have been sold and then sold again, either by the original buyer or by another party.

Additional Paid-In Capital

The amount of equity capital that is more than the par value of issued shares, representing additional investment from shareholders.

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders, usually in lieu of cash dividends.