You have received your advanced degree in biochemistry with a specialty in recombinant DNA technology. Your colleagues wish to form a partnership to research adenovirus vectors
Your legal counsel advises you on the following aspects of a partnership, yet you tell her, based on your knowledge of economics, that you think one of the following points is INCORRECT. A) An advantage of the partnership would be that it is relatively easy to form, almost as easy as forming a proprietorship.
B) The income of the partnership is treated as personal income and is subject only to personal taxation rates.
C) The personal assets of each partner should be safe and would not necessarily be at risk due to claims by financial institutions.
D) Partnerships often help reduce the costs of monitoring job performance in situations in which it is difficult to measure objectively.
C
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According to the law of large numbers, when a gamble is repeated many times,
a. the average outcome increases. b. the average outcome is the expected value. c. the probability of each outcome changes. d. insurance becomes less profitable when many people buy it.
Suppose one year ago the price index was 120 and Maria purchased $20,000 worth of bonds. One year later the price index is 126 . Maria redeems her bonds for $22,700 and is in a 40 percent tax bracket. What is Maria's real after-tax rate of interest to the nearest tenth of a percent?
a. 5.1 percent b. 3.1 percent c. 2.1 percent d. 2.4 percent
Italy has a comparative advantage in the production of
A. beer.
B. pizza.
C. both beer and pizza.
D. neither beer nor pizza.
If price is between the shutdown and break-even points, in the short run the firm will _____ and in the long run the firm will _____.
A. operate; go out of business B. operate; stay in business C. shut down; go out of business D. shut down; stay in business