When the Price of Inputs Increase

question 148

Multiple Choice

When the price of inputs increase:

• A) the supply curve shifts down and to the right.
• B) the supply curve shifts up and to the left.
• C) there is an upward movement along the supply curve.
• D) there is a downward movement along the supply curve.

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Definitions:

Residual Dividend Policy

A strategy where dividends paid to shareholders are based on earnings left over after all operational and project expenses are covered.

After-Tax Earnings

The amount of net income remaining after all taxes have been deducted, reflecting the company's profitability after fulfilling tax obligations.

Stock Split

A corporate action that increases the number of shares outstanding, reducing the price per share without changing the company's market capitalization.

Paid in Surplus

The amount of money paid to a company by investors in exchange for stock, beyond the par value of the stock.