The primary technique used by business owners when they are facing mounting obligations and do not have the resources to finance continued operations is
a. informal reorganization
b. informal liquidation
c. bankruptcy
d. selling the business
e. none of these
c. bankruptcy
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Consumption expenditure is the payment by households for consumption of
A) goods but not services. B) services but not goods. C) goods and services. D) services and for saving.
Scarcity reflects our inability to satisfy wants due to:
A. unlimited resources. B. limited resources. C. inefficient political systems. D. unemployed workers.
The average percentage markup in the economy
a. is greater, the more competitive are market conditions b. is greater, the less competitive are market conditions c. is unaffected by the competitive conditions of the economy d. tends to be highly unstable from year to year e. tends to be stable from year to year, ensuring that the price level is stable from year to year
Suppose the court system begins to make it easier for plaintiffs to win large payments from doctors and other medical professionals who are accused of malpractice. What result would you expect?
A. Doctors would order more diagnostic tests and treatment procedures even when the costs of those procedures exceed the benefits to the patient. B. Claims on medical insurance plans would probably fall. C. The cost of medical care would fall because doctors would avoid expensive tests and treatments. D. More people would seek training to become medical professionals because they would be able to make more money ordering tests and treatment procedures.