Unlimited liability exists when
A) the profits of the firm are taxed once.
B) a firm dissolves when the owner dies.
C) a corporation exists.
D) the personal assets of the owner of a firm can be seized to pay off the firm's debts.
Answer: D
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Jill, a bookkeeper just received an attractive offer from an outside firm. Her opportunity cost, of staying in her current position has
a. Increased b. Decreased c. Not changed d. All of the above
When a teacher in a private school points out to her high school principal that since there are empty seats in all classrooms, the cost of additional students is really zero, she is using the
a. law of comparative advantage. b. principle of marginal analysis. c. theory of externalities. d. notion of the cost decreases of the service sector. e. concept of opportunity cost.
The Gibson Paradox shows that:
a. Central banks face a paradox when they want to stimulate their economies because consumers may not spend the newly created money. b. When monetary policy is loose and expected inflation rises, the nominal interest rate rises rather than falls. c. When fiscal policy is loose (i.e., high government spending and falling tax rates), society as a whole is more willing (not less willing) to give up consumption today for consumption in the future. d. When expected inflation rises, nominal interest rates fall rather than rise. e. When expected inflation falls, government spending tends to increase, rather than decrease, as is frequently assumed.
Susan, a U.S. citizen, builds and operates a kennel in France. This action is an example of
a. investment for Susan and U.S. foreign direct investment. b. investment for Susan and U.S. foreign portfolio investment. c. U.S. foreign direct investment and U.S. domestic investment. d. U.S. foreign portfolio investment and U.S. domestic investment.