Assume that you set up a sole proprietorship and your lawyer tells you that as the owner, you could stand to lose your personal wealth if the business goes bankrupt. This means that a sole proprietorship
A) faces limited liability.
B) faces unlimited liability.
C) has little chance of succeeding.
D) is not a good type of business to set up.
Answer: B
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Data on after-tax income and consumption spending for the Smith family are given in the table below.After-tax IncomeConsumption Spending$9,000$18,10014,00022,60019,00027,10024,00031,600Based on these data, the Smith family has a marginal propensity to consume of
A. 0.75. B. 0.8. C. 0.6. D. 0.9.
What is meant by the term "marginal change"?
What will be an ideal response?
The function which shows combinations of inputs that yield the same output is called a(n)
A) isoquant curve. B) isocost curve. C) production function. D) production possibilities frontier.
If the cross-price elasticity of two goods is 0.25, then we know that these goods are:
A. substitutes because their cross-price elasticity is greater than zero. B. complements because their cross-price elasticity is less than 1. C. substitutes because their cross-price elasticity is less than 1. D. complements because their cross-price elasticity is greater than zero.