Torrie is thinking of starting up a small business selling hand-painted wine glasses. She is considering setting up her business as a sole proprietorship. What is one disadvantage to Torrie of setting up her business as a sole proprietorship?
A) As a sole proprietor, Torrie would be taxed twice.
B) As a sole proprietor, Torrie would not have control of the business.
C) As a sole proprietor, Torrie would face unlimited liability.
D) As a sole proprietor, Torrie would be subject to significant rules and regulations.
Answer: C
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According to the simple quantity theory of money, an increase in the money supply will shift the __________ curve to the right and raise __________
A) AD; Real GDP B) AS; the price level C) AD; the price level D) AS; Real GDP E) none of the above
Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.Equilibrium in this market occurs at the intersection of curves S and D.
Figure 4.6Refer to Figure 4.6. The area of [E + F + G] represents
A. consumer surplus. B. producer surplus. C. consumer surplus minus producer surplus. D. consumer surplus plus producer surplus.
Two reasons savers keep deposits at banks are to:
A. lower interest rates and to increase the money supply. B. equalize loan supply and demand and to earn interest. C. earn a return on their savings and to facilitate making payments. D. secure mortgages and to purchase stocks.
For a simple economy (no government, no foreign sector), the condition for equilibrium can be stated correctly as
a. saving equals actual investment. b. saving equals inventory accumulation. c. saving equals planned investment. d. inventory accumulation equals planned investment.