The owner of a proprietorship might decide incorporate the firm as a corporation in order to
A) be able to conduct business in more than one county.
B) avoid the principal-agent problem.
C) be eligible for patent protection of new products.
D) gain limited liability.
D
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Suppose a tax cut affected aggregate demand and aggregate supply. The shift in aggregate supply would make the
a. price level and real GDP change by more than otherwise. b. price level change by more than otherwise and real GDP change by less than otherwise. c. price level change by less than otherwise and real GDP change by more than otherwise. d. price level and real GDP change by more than otherwise.
Exhibit 2-3 Production possibilities curve data A B C D E Capital goods 0 1 2 3 4 Consumer goods20 18 14 8 0 According to the data given in Exhibit 2-3, the production of 1 unit of capital goods and 20 units of consumer goods:
A. is possible but would be inefficient. B. may be a result of unemployment. C. may be a result of unused natural resources. D. is not feasible with current resources and technology.
If Cassie's Coffee House purchases 42 cents worth of ingredients and spends 28 cents on wages per cup of coffee to produce an 89 cent cup of coffee, then Cassie's Coffee House's value added per cup of coffee is:
A. 19 cents. B. 28 cents. C. 47 cents. D. 61 cents.
For many consumers, bacon and eggs are complements. Therefore, egg producers monitor the price of bacon because the cross elasticity between bacon and eggs is
A. negative, and a decrease in the price of bacon will increase the demand for eggs. B. positive, and an increase in the price of bacon will increase the demand for eggs. C. negative, and a decrease in the price of bacon will decrease the demand for eggs. D. positive, and a decrease in the price of bacon will increase the demand for eggs.