Use the Following to Answer Questions

question 187

Multiple Choice

Use the following to answer questions:
Figure: Strawberries and Submarines
-(Figure: Strawberries and Submarines) Look at the figure Strawberries and Submarines. Suppose the economy now operates at point C. Moving to point E would require that the economy:

• A)achieve full employment and an efficient allocation of resources.
• B)eliminate its production of strawberries.
• C)reduce its production of submarines.
• D)improve its technology or increase its quantities of factors of production.

---

Definitions:

Voting Stock

Shares of a corporation that give the shareholder the right to vote on matters of corporate policy and on the selection of the board of directors.

Cash Dividend

A disbursement from a corporation to its stockholders, typically coming from its earnings.

Net Income

The ultimate earnings of a company, arrived at by reducing its revenues by all incurred expenses and taxes.

Nonvoting Preferred Stock

A type of preferred stock that does not grant the holder voting rights at the corporation’s shareholders' meetings.