In perfect competition, a firm's total revenue can be calculated by ________ the product price and the quantity demanded.
A. dividing
B. adding
C. subtracting
D. multiplying
Answer: D. multiplying
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Which statement is FALSE considering both advantages and disadvantages of corporations as a legal business organization?
A) Perhaps the greatest advantage of corporations is that their owners (the shareholders) enjoy limited liability—limited to the value of their shares. B) Legally the corporation continues to exist even if one or more owners cease to be owners. C) Corporations usually are not as well positioned as proprietorships and partnerships to raise large sums of financial capital. D) Separation of ownership and control is a disadvantage of the corporate structure; owners and managers may have different incentives.
A bank's capital is: a. the value of all its assets, including loans
b. the value of all its assets, excluding loans. c. the value of its physical plant, including buildings, computers, and automatic teller machines. d. the difference between its assets and liabilities.
If wages are above the MRP, a firm should employ more labor.
Answer the following statement true (T) or false (F)
When inflation and unemployment are both higher than desired, most economists believe that the government should:
A. adopt contractionary monetary policies that reduce both inflation and unemployment. B. adopt expansionary fiscal policies that reduce both inflation and unemployment. C. not act as it is impossible to reduce either inflation or unemployment under these circumstances. D. determine whether reducing inflation is more or less important than reducing unemployment and adopt a policy that targets the more important goal.