The problem with the separation of ownership from control is that
A) the owner in a proprietorship may not always act in the profit-maximizing fashion because he or she may not have the experience or expertise that professional managers have.
B) the managing partner of a firm may not always behave in the way that other managers would if they were the managing partners.
C) the managers of the firm can make decisions that reduce the wealth of the owners while not reducing their own wealth.
D) the owners of firms may not always know the best way to run a firm, yet they are the ones who elect the managers of the firm.
Answer: C
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If Veronica withdraws $1,500 from her savings account and deposits it in her checking account, then M1 will ________ and M2 will ________
A) increase; decrease B) increase; not change C) not change; decrease D) not change; not change
To make sure the U.S. President cannot unduly influence the Board of Governors:
A. the terms of the governors are staggered. B. only three governors can be replaced in any one year. C. the law prevents a resident from appointing more than one governor. D. the terms of the governors are ten years long.
Which of the following is NOT a barrier to entry?
A) patents B) licenses C) economies of scale D) U.S. antitrust legislation
Over the next 15 years, ___ out of every 10 people added to the world's population will be born in developing countries
A. 6 B. 7 C. 8 D. 9