In a Competitive Equilibrium,workers Are and Firms Are

question 9

Multiple Choice

In a competitive equilibrium,workers are and firms are .

• A) price setters,price setters
• B) price setters,price takers
• C) price takers,price takers
• D) price takers,price setters
• E) price neutral,price setters

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Definitions:

Stockholders’ Equity

The ownership claim of shareholders on total assets. It is to a corporation what owner’s equity is to a proprietorship.

Cumulative Preferred Stock

A type of preferred stock that entitles shareholders to receive dividend arrearages in full before any dividends can be issued on other shares.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company.

Dividends Received

Earnings distributed to shareholders from the investments in other companies.