​Which of the Following Is an Example of a Permanent

question 127

Multiple Choice

​Which of the following is an example of a permanent resource price differential?

• A)When the price of oil increases, oil exploration increases.
• B)When the price of CDs falls, CD production decreases.
• C)When the demand for land in a growing city increases, its price increases more than the prices of land in declining cities.
• D)When demand for computer programmers increased, more people went into that field.
• E)When the price of oil rose, demand for solar panels increased.

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Definitions:

Net Income

The total profit or loss of a company after all revenues, expenses, taxes, and costs have been subtracted from total revenue.

Operating Activities

Business activities directly related to the production, sale, and delivery of a company's products or services, generating the majority of its revenue and expenses.

Cash Dividends

Cash dividends are payments made by a corporation to its shareholders, usually as a distribution of profits.

Free Cash Flow

A measure of financial performance calculated as operating cash flow minus capital expenditures, representing the cash that a company is able to generate after spending the money required to maintain or expand its asset base.