The primary reason why individuals are willing to pay entrepreneurs to organize production is
a. that they have to guarantee that the entrepreneur will make a profit
b. they avoid taxation when activities are organized by someone else
c. that it is better for businesses to pay taxes than individuals
d. that it reduces transaction costs
e. that entrepreneurs are more vulnerable in the case of the owner
D
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Money is neutral in the model economy we discussed because
A) the money supply is exogenous. B) the money supply is intertemporal. C) prices are fully flexible. D) it is a barter economy.
Which of the following statements is an accurate statement about the Social Security (OASDI) program?
A) The program is financed by voluntary contributions. B) Only 50 percent of workers are covered by OASDI. C) Benefits are based on financial need. D) The program transfers income from those who work to those who do not work.
When people are deciding whether to deposit money in a bank:
A. people don't accurately account for the risk of losing savings. B. they will deposit the same amount in response to any given interest rate. C. everyone will respond exactly the same to any given interest rate. D. some people will require a higher interest rate to deposit the same amount of money.
Recall the Application about using value added to measure the size of Walmart to answer the following question(s). In listing both the amount and cost of Wal-Mart's 2017 sales, this Application is addressing the economic concept of:
A. real versus nominal GDP. B. GDP as a measure of welfare. C. chain-weighted indexes. D. value added.