The main advantage of a corporate form of organization is that
A) shareholders have limited liability.
B) shareholders have unlimited liability.
C) shareholders are not subject to double taxation.
D) all corporate profits must be distributed as dividends.
Answer: A
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If the market price is $4 and a perfectly competitive firm is producing 500 units and the marginal cost to produce the 500th unit is $4, which of the following is true?
A) The firm is maximizing profit. B) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is negative. C) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is positive. D) The firm should increase production to maximize profit.
Which of the following is an example of a nonrenewable resource?
a. iron b. cotton c. labor d. fish e. electricity
A public good:
a. is rivalrous in consumption and excludable b. in nonrivalrous in consumption and nonexcludable c. must be produces by government d. both b. and c.
Traditionally, the major objection to flexible rates was that they ______.
a. introduce considerable uncertainty into international trade b. were controlled solely by the U.S. government c. require special financial borrowings or reserve movements d. can result in currency shortages