Consumers Have to Make Tradeoffs in Deciding What to Consume

question 201

Multiple Choice

Consumers have to make tradeoffs in deciding what to consume because

• A)not all goods give them the same amount of satisfaction.
• B)the prices of goods vary.
• C)they are limited by a budget constraint.
• D)there are not enough of all goods produced.

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Definitions:

Declaration Date

The specific day on which a company’s board of directors announces its intent to pay a dividend to shareholders.

Legal Obligation

A duty imposed by law that requires an entity or individual to perform or refrain from performing a certain action.

Cumulative Preferred Stock

A type of preferred stock that entitles shareholders to receive dividends in arrears before any dividends can be distributed to common stockholders.

Par Value

A value assigned to a security or stock by the company that issues it, typically representing the minimum price the security can be sold for upon its initial offering.