If a corporation is sued and loses the lawsuit, its liability to pay
A. is imposed on all stockholders, personally.
B. is imposed only on the corporate CEO and the board of directors.
C. is limited to the assets held in the corporation’s name.
D. is imposed on the bondholders of the corporation.
Answer: C
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Answer the following statements true (T) or false (F)
1. The former Soviet Union was an example of a traditional economy. 2. The United States had a surplus balance of trade during most of the 1990s. 3. Deciding what to produce and allocating goods and services are functions of all types of economic systems. 4. Socialism combines monopoly, capitalism, private property, and a strong dictatorial central government.
In the specific factors model, a country's production function is ________ because of ________
A) a straight line; diminishing marginal returns B) a curved line; diminishing marginal returns C) a straight line; constant marginal returns D) a curved line; constant marginal returns E) a curved line; a limited supply of labor
Government spending that shifts income from one group of society to another, such as price subsidies and cash payments, is known as
a. merit goods spending b. debt servicing c. transfer payments d. countercyclical payments e. social spending
If all resources used in the production of a product are increased by 20 percent and output increases by 20 percent, then there must be:
A. Economies of scale B. Diseconomies of scale C. Constant returns to scale D. Increasing average total cost