It is important for a business firm to have a residual claimant because
A) income not claimed for accounting purposes is lost.
B) otherwise surplus profits would set off a process of "profit inflation.'
C) residuals account for as much as thirty percent of the wealth generated annually in the United States.
D) some person must finally be liable for all corporate acts.
E) the claimant produces an effective incentive to consider all costs and benefits relevant to a firm.
E
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A nation can maximize the net benefits from immigration by:
A. Contracting immigration until the extra welfare cost for taxpayers is zero B. Expanding immigration until its marginal benefits equal its marginal costs C. Expanding immigration because it benefits society with a greater supply of products and increased demand for them D. Contracting immigration because the benefits are minor and it reduces the wage rates of domestic workers
One of the strongest arguments against active stabilization policy is
A. that recognition lags make timely intervention very difficult. B. the economy corrects itself very slowly. C. the inability of economic theory to suggest appropriate policy. D. the difficulty of obtaining agreement on monetary policy.
Which of the following occurs when an externality is internalized?
A) Higher social well-being B) Higher private benefit C) Larger deadweight loss D) Higher returns to scale
__________ are conclusions or judgments about some issue or matter
a. Criteria b. Decisions c. Influences d. Problems