When Consumption by One Person Does Not Reduce the Potential

question 20

Multiple Choice

When consumption by one person does not reduce the potential for consumption by others good is said to be ___________.

• A) Rival
• B) Non-rival
• C) Excludable
• D) Non-excludable

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Definitions:

Dividend Income

is money paid to shareholders out of a corporation's earnings in proportion to the number of shares held, usually on a regular basis.

Stock Repurchase

A transaction where a corporation repurchases its shares from the market, thereby decreasing the volume of shares that are publicly available.

Repurchase

A company's practice of reacquiring its shares from the market, which may lead to an appreciation in the value of the outstanding shares.

Dividend Clientele Effect

A theory suggesting that investors prefer dividends at rates that match their own tax situation.