An advantage of the corporate form of organization is that
A) owners have joint unlimited liability.
B) owners have limited liability.
C) owners have individual unlimited liability.
D) creditors have unlimited liability.
B
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In the long run, a monopolistically competitive firm will set price:
a. at the intersection of the marginal cost and demand curves. b. at the intersection of the average total cost and demand curves. c. higher than the competitive level, but lower than the monopoly price. d. higher than the marginal cost, but lower than average total cost.
As more workers are hired, the marginal physical product of labor eventually declines because
A) less efficient workers are hired as the number of workers increases. B) workers do not work well together when the number of workers increases. C) the amount of capital each worker has to work with declines as the number of workers increases. D) of diseconomies of scale.
Refer to Figure 27-3. In the graph above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by Congress and the president?
A) a decrease in government purchases B) a decrease in income taxes C) a decrease in interest rates D) an increase in the money supply
While some supporters of the balanced budget amendment argue that governments should balance their budgets just like households do, which of the following is a valid argument against a balanced government budget?
a. The government has macroeconomic responsibilities. b. The government has microeconomic responsibilities. c. The government is larger than a household. d. Households depend on the government.