In Which Situation Would Economists Use the Word Equity

question 144

Multiple Choice

In which situation would economists use the word equity?

• A) Each member of society has the same income.
• B) Society is getting the most it can from its scarce resources.
• C) Those in society who have the least will receive the most.
• D) The benefits of society's resources are distributed fairly among society's members.

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Definitions:

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Acquisition

The process of acquiring control of a company by purchasing its shares or assets, effectively resulting in a change of ownership.

Restricted Shares

types of stock which are subject to certain restrictions, typically related to the vesting period, and are not fully transferrable until certain conditions are met.

Participation in Earnings

A method where stakeholders, usually employees or managers, receive a share of the company's profits, typically based on predetermined criteria.