When a Relevant Variable That Is Not Named on Either

question 163

Multiple Choice

When a relevant variable that is not named on either axis changes,

• A)there will be a movement along the curve.
• B)the curve will rotate clockwise.
• C)the curve will be unaffected since only the variables on the axis affect the curve.
• D)the curve will shift.

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Definitions:

Corporate Stock

Equity securities representing ownership shares in a corporation, entitling shareholders to dividends and a claim on assets and earnings.

Reacquired

Refers to the action of a company purchasing back its own shares or securities from investors.

Cost Method

An accounting method used for investments, where the investment is recorded at acquisition cost without recognizing its undistributed earnings.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders and holds in its treasury for future use.