For which type of organization is unlimited liability likely to be the greater problem-proprietorships or partnerships? Why?
What will be an ideal response?
Unlimited liability probably poses more problems for partnerships because each partner is liable for debts incurred by the firm, even if those debts are incurred by the other partner. A proprietor knows all the debts he or she has taken on, but a partner could be in the dark on some occasions.
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The market price of physical capital is $10 and the market wage rate is $5. If a firm is optimally hiring an additional unit of physical capital, the value of the marginal product of physical capital is:
A) $1. B) $2. C) $10. D) $50.
A ________ is the privilege granted to an individual or company by the government, which gives them the sole right to produce and sell a good
A) brand B) patent C) copyright D) trademark
A series of bank runs in a country should have no effect on M1 as money simply moves from checking deposits to currency
Indicate whether the statement is true or false
If aggregate expenditure is more than GDP, then inventories fall and GDP rises
Indicate whether the statement is true or false