One disadvantage of a sole proprietorship as a form of business organization is that
a. sole proprietorships cannot lower the transaction costs associated with contracting with resource owners
b. sole proprietorships are less efficient than corporations, because they are less specialized in production
c. owners of sole proprietorships can lose all their personal assets if the business is sued or fails
d. owners of sole proprietorships generally find it difficult to negotiate separation agreements with the other partners in the firm
e. owners of sole proprietorships generally have very little control over how they operate their businesses
C
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A monetarist economist believes that if the economy was left alone, it would rarely operate at full employment
Indicate whether the statement is true or false
Why are utils a useful unit of measure?
a. Utils demonstrate the relative levels of satisfaction a good delivers to multiple consumers. b. Utils demonstrate the relative levels of satisfaction goods deliver to a given consumer. c. Utils can be used to model the sometimes-irrational decisions consumers make. d. Utils can be used to prove that marginal utility and total utility are independent of one another.
Which combination of fiscal policy actions would most likely be offsetting?
A. Increase in taxes and government spending B. Increase in taxes but no change in government spending C. Decrease in taxes and increase in government spending D. Decrease in taxes but no change in government spending
In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market sale ________ the supply of reserves causing the federal funds rate to ________, everything else held constant
A) decreases; decrease B) increases; decrease C) increases; increase D) decreases; increase