When Economic Analysis Takes Place Within the Context of Maximizing

question 29

Multiple Choice

When economic analysis takes place within the context of maximizing a social welfare function,the conclusion always is _____.

• A)that income should be completely redistributed
• B)that income should not be redistributed at all
• C)that some level of redistribution is optimal
• D)that income redistribution has no relations to maximizing social welfare

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Definitions:

Stock Split

An action by a corporation to break up its present shares into more shares, aiming to improve the tradability of the shares.

Market Price

The price at present for the exchange of an asset or service on the open market.

Paid In Surplus

The amount of money paid by investors for shares above their nominal value during the issuance of shares, reflecting the additional equity capital that is not registered as share capital.

Stock Split

An action by a company to divide its existing shares into multiple shares to boost the liquidity of the shares.