Which of the Following Statements Is Most Accurate About the Effects

question 129

Multiple Choice

Which of the following statements is most accurate about the effects of migration?

• A) Migration generally benefits the mover, but there is a net efficiency loss to the world.
• B) Migration generally benefits everyone in both the origin and destination nations.
• C) Migration generally benefits the mover and creates a net efficiency gain for the world.
• D) Remittances cause the gains from immigration to be distributed unevenly.

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Definitions:

Residual Dividend Theory

The idea that corporations pay dividends with whatever money is left over out of earnings after all projects with a positive NPV are undertaken.

Signaling Effect

The idea that actions taken by a company can provide information to the market or signal the company’s future prospects, potentially affecting its stock price.

Retention for Investment

The practice of holding back a portion of earnings or profits for reinvestment in the business, rather than distributing them as dividends.

Disposition of Earnings

Decisions made by a company regarding the allocation of its net income, including dividends distribution and retained earnings.