If Laborers Become More Efficient Over Time, and If the Ajax

question 313

Multiple Choice

If laborers become more efficient over time, and if the Ajax Company would want to expand production, they would

• A) substitute capital for labor.
• B) hire more laborers.
• C) hire fewer laborers.
• D) produce less product.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company’s earnings.

Liquidation

The process of winding up a company's financial affairs by selling off its assets to pay off debts.

Election

The process through which individuals select their leaders or decide on matters of public policy through voting in a democratic society.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities.