An important problem with corporations is
A) the inability of the government to control and tax the firms.
B) the possibility of large liabilities for the owners.
C) the separation of ownership and control.
D) the difficulties with raising financial capital.
C
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Which of the following is a fixed cost for ACME manufacturing?
A) wages paid to labor B) the annual fire and theft insurance premiums C) the utility bill D) raw material costs E) the cost of shipping its product to market
If the marginal tax rate is less than the average tax rate, the tax system is
A) progressive. B) proportional. C) regressive. D) liberal.
From society's point of view, the amount of air and water pollution that currently exists is excessive. Which of the following statements are explanations of this excessive pollution?
a. Firms that cause air and water pollution are not paying the full social costs of producing their output. b. Consumers, who purchase goods from firms that pollute, are not paying a price for these goods which totally reflect the social costs of producing the goods. c. Private property rights for clear air and clean water are not currently well defined by the judicial system; hence private individuals cannot charge polluters for the external costs these polluters impose on private individuals. d. All of these.
Which of the following looks at the demand side of the market to explain some of the observed international trade patterns?
a. The theory of consumer preferences b. The factor abundance theory c. The product life cycle theory d. The Ricardian model e. The human skills approach