The Market Price of ABC Stock Is Most Apt to Be

question 3

Multiple Choice

The market price of ABC stock is most apt to be affected by which one of these events?

• A)Twenty-five percent increase in interest rates,just as expected
• B)The sudden passing of ABC's CEO
• C)An increase in ABC's annual dividend by the same percentage as last year's increase
• D)The completion of ABC's new distribution center,right on schedule
• E)An increase in ABC's payroll costs,in line with current inflation

---

Definitions:

Output per Worker

A measure of productivity calculated by dividing total output of goods or services by the number of workers involved in the production.

Productivity of Labor

The measurement of the output produced by employees per unit of input, such as per hour of work.

Diminishing Returns

A principle which states that as more units of a variable input (like labor) are added to fixed inputs (like capital), the additional output from each new unit of input will eventually decrease.

Wage Rates

The fixed amount of compensation paid to employees for their labor, typically measured per hour or piece.