Jeremy is thinking of starting up a small business selling NASCAR memorabilia. He is considering setting up his business as a sole proprietorship. What is one disadvantage to Jeremy of setting up his business as a sole proprietorship?
A) As a sole proprietor, Jeremy would face unlimited liability.
B) As a sole proprietor, Jeremy would be subject to significant rules and regulations.
C) As a sole proprietor, Jeremy would be taxed twice.
D) As a sole proprietor, Jeremy would not have control of the business.
A
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Suppose a terrorist group bombs a federal building, causing $ 1 million in expenditures on new construction and healthcare for the victims. The new expenditures
A) would be subtracted from the gross domestic product account. B) would be added to the gross domestic product account. C) would be added to the gross domestic product account and subtracted from the national income account. D) would impact GDP in none of the above ways.
The ________ system of currency exchange was set up in 1944
A) managed float B) flexible C) gold standard D) Bretton Woods
When faced with a market failure, the government:
A. usually tries to redistribute the existing surplus more fairly. B. always takes over the market. C. often encourages the well-functioning firms to stay through protectionist policy. D. generally enacts thoughtful policy in order to create market efficiency.
If people cannot distinguish between goods A and B, then economists describe the goods as
a. having a zero cross elasticity b. being perfect substitutes c. belonging to an oligopolistic industry d. belonging in different markets e. having a cross elasticity of one