If the quantity of money demanded exceeds the quantity of money supplied, then the
A) equilibrium interest rate will decrease.
B) equilibrium interest rate will increase.
C) equilibrium interest rate stays the same.
D) effect on the equilibrium interest rate is indeterminate.
B
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An advantage of the corporate form of organization is that
A) owners have joint unlimited liability. B) owners have limited liability. C) owners have individual unlimited liability. D) creditors have unlimited liability.
An externality is
a. always a benefit to the recipient b. always a detriment to the recipient c. an activity that occurs in a business that is unknown to management d. an unintended benefit or cost imposed on third parties resulting from market activity e. an act, caused by a firm located in this country, that has an effect on a person in a foreign country
Although economic science can contribute theoretical and factual knowledge on a particular issue, the final decision on policy questions often depends on:
a. information that is not currently available b. social values c. ethical considerations d. all of these
A market is not a pure monopoly if firms
a. can enter it freely. b. sell unique products. c. can exit the market freely. d. require government permission to sell in the market.