You have received your advanced degree in biochemistry with a specialty in recombinant DNA technology. Your colleagues wish to form a partnership to research adenovirus vectors. Your legal counsel advises you on the following aspects of a partnership, yet you tell her, based on your knowledge of economics, that you think one of the following points is INCORRECT.
A. The income of the partnership is treated as personal income and is subject only to personal taxation rates.
B. An advantage of the partnership would be that it is relatively easy to form, almost as easy as forming a proprietorship.
C. Partnerships often help reduce the costs of monitoring job performance in situations in which it is difficult to measure objectively.
D. The personal assets of each partner should be safe and would not necessarily be at risk due to claims by financial institutions.
Answer: D
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In the classical theory of growth, what is the final outcome of an increase in growth and labor productivity?
What will be an ideal response?
Which of the following statements is true?
A) The marginal cost curve intersects the average fixed cost curve at its minimum point. B) When marginal cost is greater than average fixed cost, average fixed cost increases. C) Average fixed cost does not change as output increases. D) As output increases, average fixed cost becomes smaller and smaller.
Which of the following is true of marginal revenue product (MRP) and marginal product (MP)?
a. MRP = MP ? price, whether the firm is a price searcher or not. b. MRP = MP ? price only if the firm is a price searcher. c. MRP = MP ? price only if the firm sells in a perfectly competitive market. d. MRP = MP ? marginal cost only if the firm is a price searcher. e. MRP = MP/price only if the firm is a price taker.
What is a free rider?
a) a person who will only purchase a product on sale b) a person who receives a benefit of a good but avoids paying for it c) a person who can produce a good at no extra cost d) a person who takes advantage of tax loopholes to lower his taxes