Compared to a proprietorship, an advantage of a partnership is
A) that profits are not taxed twice.
B) double taxation.
C) the ability to take advantage of greater specialization.
D) the limited liability of the partners.
Answer: C
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Why did the money supply fall during the Great Depression?
a. The monetary base fell throughout the Great Depression. b. The amount of currency fell during the Great Depression. c. The ratio of currency/deposits fell during the Great Depression. d. The money multipier rose during the Great Depression. e. None of the above.
Under a Cournot duopoly, the collusion curve represents:
A) all possible allocations of the pure monopoly quantity among the two firms in the duopoly. B) all possible allocations of the pure monopoly quantity that would be possible if the two firms in the duopoly did not cooperate. C) all optimal price-quantity outcomes for a cartel rather than a Cournot duopoly. D) the potential profits to be earned by firms in a collusive cartel.
Suppose a player in a game has a dominant strategy, but they threaten to take another action. Can this threat be credible?
A) No, such threats are never credible to other rational players. B) No, if the player has a dominant strategy, they must take this action. C) Yes, if they can link the current game to another bargaining problem in which their joint strategy for the combined games is rational. D) Yes, dominant strategies may not always yield the highest payoffs.
If the price of the Brazilian real is 60 cents and a U.S. resident purchases a Brazilian-manufactured item for 60,000 real, there will be
A) a quantity demanded of 60,000 real and a quantity supplied of $60,000. B) a quantity demanded of 60,000 real and a quantity supplied of $36,000. C) a quantity demanded of 60,000 real, but we cannot determine the effect in the market for dollars. D) a quantity supplied of 60,000 real and a quantity demanded of 60,000 yen.