Marcos Inc

question 127

Multiple Choice

Marcos Inc.had net income for 2017 of $40,000.It declared and paid a $3,500 cash dividend in 2017.If the company's retained earnings for the end of the year was $38,200,what was the company's retained earnings balance at the beginning of 2017?

• A)$81,700
• B)$74,700
• C)$5,300
• D)$1,700

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Definitions:

Short-Run Aggregate Supply

The overall quantity of products and services that companies intend to offer for sale within a brief period, based on existing prices.

Aggregate Demand

Overall market demand for goods and services in an economy, determined at a prevailing comprehensive price level for a certain duration.

Equilibrium Output

The level of output where the quantity of goods produced equals the quantity of goods consumed, resulting in market equilibrium.

Potential Output

The maximum amount of goods and services an economy can produce when it is most efficiently utilizing all its resources.