From the economist's point of view, dividends paid to ...

[lunatika]

From the economist's point of view, dividends paid to stockholders are part of a corporation's costs
 
  A) because taxes are paid on a corporation's profits prior to the payment of dividends.
  B) because they must be included in stockholders' incomes for purposes of personal income taxation.
  C) insofar as they are contractual obligations.
  D) insofar as they represent what funds invested in the corporation could have earned elsewhere.

Question 2

Suppose Joe can prepare 20 sandwiches or 10 pizzas in an hour and Beth can produce 36 sandwiches or 27 pizzas. The concept of comparative advantage concludes that
 
  A) Beth should produce both goods because she can produce more of both goods in an hour than can Joe.
  B) Beth should produce sandwiches and Joe should produce pizza.
  C) Beth should produce pizza and Joe should produce sandwiches.
  D) Beth should produce both goods and Joe should produce sandwiches.

[Kimmy]

Answer to Question 1

D

Answer to Question 2

C