All of the following are characteristics of a proprietorship EXCEPT
A) the business is owned by one individual.
B) one person is responsible for all the debts of the firm.
C) one person gets all of the profits.
D) the firm can form a corporation to protect itself against the debts.
D
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Suppose that Country A has an absolute advantage over Country B in the production of both wheat and cloth. The opportunity cost of 1 unit of wheat is 2 units of cloth in Country A and 3 units of cloth in Country B. It follows that production of both wheat and cloth will be maximized if
a. Country A specializes in cloth. b. Country A specializes in wheat. c. Country A produces both goods. d. both countries produce both goods.
Total fixed cost
A. increases as output increases. B. declines as output increases. C. is always zero. D. remains constant even if the firm shuts down.
In an oligopoly market with a dominant firm and a competitive fringe, if market demand is _____, the market price will be low and the _____ profit will be small
a. less elastic; fringe's b. less elastic; dominant firm's c. more elastic; fringe's d. more elastic; dominant firm's
Which of the following would lead to an (eventual) increase in the labor force by shifting the labor demand curve?
a. A trend toward earlier retirement ages b. An increase in the working-age population c. A reduction in the number of guaranteed student loans d. An increase in college work-study programs e. A decrease in personal income tax rates