Use the Following to Answer Questions

question 49

Multiple Choice

Use the following to answer questions :

-(Exhibit: Rental Price of Capital) Based on the graph,if the capital market is initially in equilibrium at A with real rental price R₃/P and capital stock K₂,then holding other factors constant,an increase in the quantity of labour employed will move the real rental price of capital to:

• A) R₁/P.
• B) R₂/P.
• C) R₄/P.
• D) R₅/P.

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Definitions:

Affiliate Dividends

Affiliate dividends refer to the distribution of earnings paid to shareholders of a subsidiary or an affiliate company.

Outstanding Shares

The total number of shares of a corporation that have been issued and are currently held by investors, including public shareholders and company officers.

Dividends Paid

The portion of a company's earnings that is distributed to its shareholders as a return on their investment.

Investment Account

An account held at a financial institution which allows an individual to deposit funds and make investments in securities and other assets.