Suppose That a New Government Is Elected in Eurnesia

question 18

Multiple Choice

Suppose that a new government is elected in Eurnesia.The new government takes steps toward improving the court system and reducing government corruption.The citizens of Eurnesia find these efforts credible and outsiders believe these changes will be effective and long lasting.These changes will probably

• A)raise real GDP per person and productivity in Eurnesia.
• B)raise real GDP per person but not productivity in Eurnesia.
• C)raise productivity but not real GDP per person in Eurnesia.
• D)raise neither productivity nor real GDP per person in Eurnesia.

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Definitions:

Liquidating Dividend

A payment made by a corporation to its shareholders during its liquidation, distributing the remaining assets.

Regular Cash Dividend

Cash payment made by a firm to its owners in the normal course of business, usually made four times a year.

Ex-Dividend Date

The cutoff date after which new buyers of a stock will not be entitled to receive the next declared dividend.

Shareholders

Individuals or entities that legally own one or more shares of stock in a joint-stock company.