Explain three of the shortcomings of the free-enterprise system
What will be an ideal response?
The shortcomings of the free-enterprise system are: products may not always be produced at lowest cost, income may be unevenly distributed, and periods of inflation and unemployment may recur.
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What is a natural monopoly and what problem does natural monopoly pose for regulators?
What will be an ideal response?
When an investor buys a corporate bond, the ________ the bond is a loan to the corporation
A) interest on B) dividend payment on C) coupon payment on D) face value of
The role of the costs of capital is influenced by the degree to which firms can substitute capital for other inputs of production known as relative prices
Indicate whether the statement is true or false
In terms of total sales, the dominant form of business firm in the U.S. economy is the
a. corporation b. sole proprietorship c. partnership d. nonprofit organization e. limited partnership corporation