Which of the Following Statements Is True About Government Corporations

question 64

Multiple Choice

Which of the following statements is true about government corporations?

• A) Profits from government corporations are distributed as dividends.
• B) Government corporations must pay taxes on profits.
• C) Government corporations do not employee many people.
• D) You can invest in both a private corporation as well as a government corporation.
• E) Government corporations do not usually have any stockholders.

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Definitions:

Short Run

A period in which at least one input in the production process is fixed, limiting the ability of the firm to adjust production.

Competitive Firm

A business operating in a market where it has little to no influence over the price of its product or service due to competition.

Break-even Price

The price at which the total revenues of a business exactly cover its total costs, thus resulting in neither profit nor loss.

Marginal Revenue

The rise in income generated by selling an additional unit of a product or service.