If an industry's long-run supply curve is negatively-sloped, the industry has
a. increasing costs.
b. decreasing costs.
c. constant costs.
d. impossible to predict.
B
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For a risk averse person, an increase in wealth brings ________ total utility of wealth and ________ marginal utility of wealth
A) higher; higher B) higher; lower C) lower; higher D) lower; lower
Torrie is thinking of starting up a small business selling hand-painted wine glasses. She is considering setting up her business as a sole proprietorship. What is one disadvantage to Torrie of setting up her business as a sole proprietorship?
A) As a sole proprietor, Torrie would face unlimited liability. B) As a sole proprietor, Torrie would be subject to significant rules and regulations. C) As a sole proprietor, Torrie would be taxed twice. D) As a sole proprietor, Torrie would not have control of the business.
Which of the following statements is true?
A. The effectiveness of a board of directors in monitoring managers is enhanced by appointing members from the firm who are well-informed about the management problems facing the firm. B. Shareholders as a group have little or no ability to force managers to pursue maximization of the firm's value. C. Reducing the amount of debt financing can reduce divergence between the shareholders' interests and the manager's interests. D. Equity ownership by managers is thought to be one of the most effective corporate control mechanisms. E. All of the above are true.
Criteria for an optimum currency area include all the following except
A. extensive trade with each other. B. a common language. C. similar business cycle patterns. D. fiscal transfers.