An advantage of a corporation is
A. the fact that ownership and control are never separated.
B. the ability to raise large sums of financial capital.
C. the fact that the corporation is dissolved when one of its owners dies.
D. unlimited liability on the part of shareholders.
Answer: B
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A tax credit given to first-time home buyers would result in a _____________ shift in the ______________ curve for housing, which would lead to the unintended result of a(n) _____________ in the price of housing.
A. leftward; supply; increase B. leftward; demand; decrease C. rightward; supply; decrease D. rightward; demand; increase E. none of the above
When investors follow a "herd instinct," they make decisions:
A. based on the sound logic of a group, rather than the individual. B. based on emotion, not objective information. C. based on hearsay, not objective information. D. as a group, inflating the prices of goods somewhat arbitrarily.
The acquisition of more than 10 percent of the outstanding shares in a company in another country is
A. foreign direct acquisition. B. foreign direct investment. C. portfolio acquisition. D. portfolio investment.
Which of the following is a benefit of income inequality?
A. It promotes economic growth in the less developed economies. B. It motivates people to be at the high end of income distribution. C. It reduces the intensity of business fluctuations in an economy. D. It reduces the taxes to be paid by the ones in the low end of income distribution.