One advantage of a proprietorship is that
A) it is relatively easy to raise financial capital for a proprietorship.
B) a proprietorship is relatively easy to form and to dissolve.
C) there are limits to the possible liabilities of the owner.
D) depreciation rates on capital are higher.
Answer: B
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Under which of the following scenarios does an increase in the wage tax cause a drop in employment but no deadweight loss?
A. When the wealth effect for workers is larger than the substitution effect. B. When the wealth effect for workers is smaller than the substitution effect. C. When the wealth effect for workers is equal to the substitution effect. D. It is possible under any of these scenarios. E. There is no scenario under which this is possible.
The average output produced per worker is one way of measuring
A) inflation. B) the interest rate. C) employment. D) productivity.
Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. Kate decides to play the second game. Kate's expected value of payoff is:
A. $5.00. B. $5.75. C. $4.50. D. $4.00.
What role do non-monetary considerations play in physical capital investment decisions as opposed to human capital investment decisions?
a. they play a minor to nonexistent role in both. b. they play an equally important role in both. c. they are probably more important in physical capital investment decisions. d. they are probably more important in human capital investment decisions.