An Exchange of One Share of an Old Issue of Stock

question 50

Multiple Choice

An exchange of one share of an old issue of stock for a multiple number of shares of a new issue of stock with reduced par value is known as a:

• A) property dividend.
• B) stock dividend.
• C) stock split.
• D) liquidating dividend.

---

Definitions:

Average Product

The total output produced per unit of a factor of production, calculated as total product divided by the quantity of the factor used.

Marginal Product

The additional output produced by adding one more unit of a specific input, while holding other inputs constant.

Production Possibilities

Various combinations of the amounts of different goods that can be produced within a given economy, given technological constraints and available resources.

Isocost Line

A graph line representing all combinations of a firm's inputs that cost the same total amount.