Suppose you form a legal partnership with your best friend, and she purchases consulting services calling for a $100,000 fee. Your business is broke, and you never wanted the consultants to work for you -- only your partner did. For how much of this debt are you legally liable?
a. none of it
b. all of the $100,000
c. the proportion reflected by the proportion of the business owned
d. only an amount equal to the assets of the business
e. $50,000
B
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What is meant by the term "optimization"? What do economists usually believe about how individuals optimize?
What will be an ideal response?
On a linear demand curve, the lower the price,
A) the less elastic is demand. B) the more elastic is demand. C) the elasticity equals -1. D) the elasticity equals zero.
The current debate about fiscal and monetary policy tends to focus on
a. which policy is less destabilizing. b. which policy is more effective. c. whether the Fed can control the money supply. d. which policy works more quickly.
Loans are better than grants for higher education.
A. True B. False C. Uncertain