The concept of limited liability
A) does not apply to a corporation.
B) means that the owners of a corporation have liability limited to the value of the shares in the firm.
C) means that owners of a firm are subject to double taxation.
D) limits the amount of specialization that can occur in a firm.
Answer: B
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The U.S. government is an asset to the U.S. economy when it
(a) effectively serves its role as the agent that defines and protects private property rights. (b) taxes one group of individuals and redistributes that taxed income to another group. (c) permits special groups to secure legislative protection from foreign competition in the industries which they own, manage or work within. (d) does all of the above.
Automatic stabilizers are so-named because
A) they are automatically undertaken by the Federal Reserve Bank to reduce budget deficits. B) they occur automatically when real GDP changes. C) the policy suggestions of the Council of Economic Advisors are automatically followed. D) the policy suggestions of the Office of Management and Budget are automatically followed.
Monetary neutrality means that while real variables may change in response to changes in the money supply, nominal variables do not
a. True b. False Indicate whether the statement is true or false
If an economy's exports are $600 billion and its imports are $750 billion, its net exports are
A) $1,550 billion B) $150 billion C) -$150 billion D) 1.07.