Torrie is thinking of starting up a small business selling hand-painted wine glasses. She asks her sister, Lisette, if she'd like to join her in setting up a partnership to start the business
What is one disadvantage in joining the partnership that Lisette should consider?
A) Lisette should realize that, as an owner of the business, she will be personally responsible for the debts of the business.
B) Lisette should realize that her profits in the partnership will always be less than Torrie's profits, since Torrie had the idea to start the business.
C) Lisette should realize that Torrie will have complete control over the business because it was her idea.
D) Lisette should realize that only Torrie will be allowed to own stock in the business as the founding partner.
A
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Which of the following statements identifies a similarity between optimization in levels and optimization in differences?
A) Both techniques consider only the costs of different alternatives. B) Both techniques consider only the total benefits of different alternatives. C) Both techniques evaluate the total net benefit of different alternatives to arrive at a decision. D) Both techniques require the conversion of all costs and benefits into a common unit of measurement.
A local Krispy Kreme doughnut shop reduced the price of its doughnuts from $4 per dozen to $3.50 per dozen, and as a result, the daily sales increased from 300 to 400 dozen. This indicates that the price elasticity of demand for the doughnuts was:
a. elastic. b. inelastic. c. of unitary elasticity. d. indeterminate; more information is needed to determine the price elasticity of demand.
Because increases in input prices eventually make it to consumers when they buy the final product, the PPI:
A. is considered a good predictor of future consumer prices. B. accounts for inflation before it reaches consumers, adjusting the CPI downward. C. is a lag variable for inflation. D. accounts for inflation before it reaches consumers, adjusting the CPI upward.
In 2011, the poverty line for a family of four was about:
A. $15,508 B. $30,453 C. $22,891 D. $38,754