According to a utilitarian, total social utility will be maximized when marginal dollars are distributed to the people with the
a. lowest marginal utility of income.
b. highest marginal utility of income.
c. highest total utility from their income.
d. most productive labor resources.
b
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Smith's Shoes is a failed business enterprise, with debts of $10 million. Steve Smith has an ownership stake in Smith's shoes
Which of the following statements INCORRECTLY characterizes Steve Smith's legal liability for the debts of Smith's Shoes, depending on the firm's type of business organization? A) If Smith's Shoes is a proprietorship, then Steve Smith is fully liable for the entire $10 million in debt of the failed shoe store. B) If Steve Smith is a partner in Smith's Shoes, then his legal liability for the debts of Smith Shoes is $10 million divided by the number of partners. C) If Smith's Shoes is a corporation in which Steve Smith is a stockholder, then Steve Smith does not need to use any of his wealth to pay the debt because the company has limited liability. D) None of the above statements is incorrect.
Suppose the accompanying figure shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist.
The profit-maximizing level of output for this monopolist is ________ units per day.
A. I B. H C. F D. G
Which economist argued that free markets unleashed the "animal spirits" of entrepreneurs, propelling innovation, technology, and growth?
A. Irving Fisher. B. Lord Kelvin. C. John Maynard Keynes. D. Kenneth Olsen.
Deposit insurance only seems to be viable at the federal level. This is likely due to the fact that:
A. a run on the banks within a state will always spread countrywide. B. the cost of state insurance is prohibitively high. C. the U.S. Treasury backs the FDIC and can therefore withstand virtually any crisis. D. state funds are less informed about the solvency of national banks.