Isabella Owns 100 Shares of IBM ______ Stock, Which Means

question 106

Multiple Choice

Isabella owns 100 shares of IBM ______ stock, which means she has voting rights on company decisions at IBM, but only residual claims on the company's assets.

• A) preferred
• B) principal
• C) management
• D) common

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Definitions:

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded in the market.

Efficiency Wage

A higher wage paid by employers to increase productivity by attracting better applicants, reducing turnover, and motivating employees.

Marginal Productivity

The additional output that is produced by adding one more unit of a factor of production, holding other factors constant.

Income Distribution

The way in which total income is divided among the population or different groups in an economy.