Answer the following question on the basis of the data given for two regions, East and West, of a hypothetical world. The nations have the production possibilities for units of food and clothing given below.
Refer to the data above. In the East region, the relative cost of 1 unit of:
A. Food is 4 units of clothing
B. Food is .5 units of clothing
C. Clothing is 4 units of food
D. Clothing is .5 units of food
B. Food is .5 units of clothing
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If MRP > MLC, the firm
a. is employing the optimal quantity of labor b. should decrease the quantity of labor it employs c. should lower the wage rate d. should increase the quantity of labor it employs e. should raise the wage rate
Which of the following is NOT a disadvantage of a proprietorship?
A) how profits are taxed B) ability to raise capital C) unlimited liability D) the disposition of the firm when the owner dies
A system in which power plants buy and sell the right to pollute in the form of emission credits is known as:
A. direct regulation. B. a voluntary program. C. a market incentive program. D. a tax incentive program.
How do a sole proprietorship and a corporation differ?
A) Proprietorships have unlimited liability while corporations have limited liability. B) Corporations face more taxes than do proprietorships. C) Corporations can issue stocks and bonds, while proprietorships cannot. D) All of these are differences between the two types of businesses.