A disadvantage of the partnership form of business organization is
A. its limited liability.
B. that it can issue only one class of stock.
C. its limited access to capital.
D. that the owners must fight a lot of red tape to form the firm.
Answer: C
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When capacity utilization rate is high:
a. the price level is likely to go up. b. consumption is likely to go down. c. investment is likely to increase. d. the rate of interest is likely to decrease. e. aggregate supply of goods is likely to remain constant.
The debt held by the people themselves neither adds to nor subtracts from national production or consumption. That neutrality, however, doesn't rule out complications
Indicate whether the statement is true or false
According to the law of supply,
a. producers are willing to supply larger amounts of a good as its price increases. b. a direct relationship exists between the price of a good and the amount buyers choose to buy. c. an inverse relationship exists between the price of a good and the amount buyers wish to buy. d. an inverse relationship exists between the price of a good and the amount producers supply.
Under the conditions of monopolistic competition:
A. firm profits are higher in the long run than in the short run. B. average costs of production are the same in the short run as they are in the long run. C. economic profit is zero in the long run. D. price equals marginal cost.