The Two Big Economic Questions

question 67

Multiple Choice

The two big economic questions

• A)summarize the scope of economics.
• B)are "what goods and services are produced?" and "how are goods and services produced?"
• C)have nothing to do with goods and services.
• D)do not consider for whom goods and services are produced.
• E)have nothing to do with the way goods and services are produced.

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Definitions:

Fully Participating

Fully participating describes a type of equity security or preferred stock that has the right to participate in certain additional dividends or distributions beyond a specified amount.

Rights

Legal entitlements or permissions granted to individuals or entities, often referring to stock rights in a corporate context, allowing shareholders to buy new shares before the general public.

Common Stockholders

Individuals or entities that own shares of common stock in a company, giving them voting rights and potential dividends.

Preferred Stockholders

Investors who own preferred shares in a company, granting them priority in dividend payments and assets in the event of liquidation over common stockholders, but typically without voting rights.