Use the Information Below to Answer the Following Questions

question 23

Multiple Choice

Use the information below to answer the following questions.
Fact 10.2.1
Consider the following three methods of preparing your tax return. Method A uses a personal computer (cost equal to $1,000) and 1 hour of your time. Method B uses a calculator (cost equal to $30) and 12 hours of your time. Method C uses pen and paper (cost equal to $1) and 2 days (16 hours) of your time.
-Consider Fact 10.2.1. Choose the best statement.

• A)When your wage rate is $5 per hour, the economically efficient method is method C.
• B)When your wage rate is $50 per hour, the economically efficient method is method B.
• C)When your wage rate is $500 per hour, the economically efficient method is method A.
• D)all of the above
• E)B and C only

---

Definitions:

Bond Interest

The regular payments made to bondholders as compensation for the investment, typically expressed as a percentage of the principal.

Dividends

Disbursements issued to shareholders by a company, typically sourced from the firm's earnings.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders. The corporation itself can own assets, borrow money, sue or be sued.

Debt-To-Equity Ratio

It's a financial indicator that compares the proportions of debt and shareholders' equity in funding company assets.