Which of the following statements is NOT true of a corporation?
A) It is an entity separate from the individuals who own it.
B) It can enter into contracts.
C) It can incur debt that is an obligation of the corporation but not of its individual owners.
D) It has the right to sue and be sued.
E) It is legally obliged to distribute all profits to shareholders.
Ans: C) It can incur debt that is an obligation of the corporation but not of its individual owners.
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All of the following are true of the labor-supply and labor-demand curves intersection except they:
A. only intersect once. B. intersect at the equilibrium wage. C. intersect at the profit-maximizing quantity for the firms in the market. D. intersect at the revenue-maximizing quantity for the firms in the market.
The kinked demand curve:
a. applies when competitors match price decreases but not price increases. b. could apply to market demand in any market structure. c. applies when competitors match price increases but not price decreases. d. applies to the price leadership model. e. applies when competitors act independently.
Economic takeoff:
A. occurs when development becomes self-sustaining. B. will eventually occur in all developing countries. C. typically occurs in the absence of foreign investment. D. has yet to occur in any developing country.
If a firm is earning short-run economic profits shown in the above figure, in the long run
A. firms enter the industry, the market supply curve shifts rightward, and the market price rises. B. firms exit the industry, the market supply curve shifts leftward, and the market price falls. C. firms enter the industry, the market supply curve shifts rightward, and the market price falls. D. firms exit the industry, the market supply curve shifts rightward, and the market price falls.