A major disadvantage of a proprietorship is that the ________
A) owner's entire wealth is at risk
B) profits are taxed twice
C) firm has perpetual life
D) owner has limited liability
A
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Which of the following is not how economists describe the term "economic rent?:
A. The gains that workers and owners of capital receive from supplying their labor or machinery in factor markets. B. The producer surplus in output markets. C. The rental price of a factor of production minus the cost of supplying it. D. The total revenue that a factor of production earns its owner.
The two main categories of U.S. exports are
a. transportation goods and fuel b. steel and fuel c. capital goods and industrial supplies and materials d. fuels and agricultural goods e. agricultural and transportation goods
In the long run,
a. continuing budget surpluses cause interest rates to fall, thereby stimulating investment spending b. any deviation from a balanced budget will plunge the economy into recession c. there can be no economic growth unless the government's budget is in surplus d. there can be no economic growth unless the government's budget is balanced e. government spending must increase as a fraction of GDP
Per capita GDP will definitely fall if
A. The rate of economic growth is less than the rate of population growth. B. There is a decrease in the size of the working population. C. The population falls. D. The rate of economic growth falls.