Often single-owner proprietorships seem more profitable than they really are. The reason for this is that
A) they receive special tax benefits compared to corporations.
B) they use different accounting procedures.
C) they often fail to consider the opportunity cost of the labor provided by the owner.
D) they are not allowed to deduct depreciation expense.
Answer: C
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The above figure shows the domestic market for tomatoes. Suppose this market is isolated from global competition and there is a support price set at $16. In this figure, what area equals the deadweight loss?
A) area B + area C + area D + area F B) area E C) area C + area D + area E + area G D) area A E) area F
In the above figure, the second ton of wheat would be produced even though the producer surplus on it is zero if the price per ton of wheat was
A) $25. B) $50. C) $75. D) $100.
When members of Congress vote to pass new legislation, they will
A) fail to consistently represent the underlying preferences of voters. B) always vote for the alternative favored by a majority of the voters. C) always fail to represent the underlying preferences of voters. D) always vote for the alternative favored by a plurality of the voters if there is no majority position.
The international unit of accounting used by the International Monetary Fund (IMF) is called
A. special drawing rights. B. the IMF dollar. C. the quota subscription. D. the Eurodollar.