Assume you and your best friend set up a partnership and your lawyer tells you that as the owners, you could each stand to lose your personal wealth if the business goes bankrupt. This means a partnership
A) faces limited liability.
B) faces unlimited liability.
C) has little chance of succeeding.
D) is not a good type of business to set up.
Answer: B
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In the economic way of thinking, "scarcity" is another way of saying
A) "regret." B) "responsibility." C) "unsustainable." D) "sacrifice." E) "waste."
Which of the following is true of banks? a. Banks reduce the opportunity cost of holding idle cash
b. Banks act as intermediaries between the government and private investors. c. Banks can reduce risk by lending to rich borrowers. d. Banks reduce the transaction costs of borrowing and lending money. e. Banks can reduce risks by extending more loans.
Other things the same, if the central bank decreases the rate at which it increases the money supply, then
a. unemployment and inflation rise in the short run. b. unemployment rises and inflation falls in the short run. c. unemployment falls and inflation rises in the short run. d. unemployment and inflation fall in the short run.
In his test of the HO model for the United States, Leontief found that :
a. the United States was importing labor intensive commodities. b. the U.S. capital/labor ratio for imported goods was larger than that for the exported goods. c. the U.S. capital/labor ratio for imported goods was smaller than that for d. the exported goods there was a trade imbalance in the United States.