What Is One Reason It Might Be Difficult to Dissuade

question 24

Multiple Choice

What is one reason it might be difficult to dissuade people from pirating music off the Internet?

• A) Consumer surplus is very high when music is pirated.
• B) In general, consumers get a rush from "stealing."
• C) Consumers mistakenly believe that the Internet is public domain.
• D) Producer surplus is very low when music is pirated.

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Definitions:

Common Stock

Equities, or equity securities, issued as ownership shares in a publicly held corporation. Shareholders have voting rights and may receive dividends based on their proportionate ownership.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

ROE

Equity Return, which is determined by dividing the net income by the equity of shareholders, is a method used to evaluate financial success.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividends, indicating how quickly a firm's dividend payments increase over time.