Which Statement Best Describes the Impact of Social Networking Sites

question 13

Multiple Choice

Which statement best describes the impact of social networking sites on political participation?

• A) Social networking sites are seldom used in the political arena.
• B) Social networking sites have increased political communication among young people.
• C) Social networking sites are used by politicians, but not the general public, to discuss issues.
• D) Social networking sites have decreased political participation among most age groups.

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Definitions:

Signaling Effect

The signaling effect is a theory in economics and finance suggesting that actions taken by a company, such as dividend announcements or share repurchases, send signals to the market about the company’s financial health and prospects.

Stock Prices

Stock prices are the current market price at which shares of a company can be bought or sold. They fluctuate based on demand and supply, company performance, and market conditions.

Dividends

Funds distributed by a company to its shareholders, typically coming from the firm's profits.

Clientele Effect

The theory suggesting that changes in dividend policy can attract or repel specific groups of investors, affecting the stock price.