An advantage of a partnership over a corporation is that
A) a partnership's profits are taxed only once, while retained profits of a corporation are taxed twice.
B) a partnership's owners usually have limited liability, while the entire wealth of owners of a corporation is at risk.
C) a partnership has a perpetual life, while a corporation dies with its owners.
D) a partnership's cost of capital is low relative to that of a corporation.
A
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The Lorenz curve shows
A) how poverty rates change over time. B) the percentage of population below the poverty line. C) the degree of inequality in the income distribution. D) the ratio of cash income to payments-in-kind.
The downward-sloping portion of the marginal cost curve is the only portion that matters in production
Indicate whether the statement is true or false
Which of the following is true of stimulus policy enacted in 2009?
a. We can be sure that it reduced the severity of the recession because the recession was less severe than the Great Depression. b. We can be sure that it reduced the severity of the recession even though the recession was more severe than the Great Depression. c. We can not be sure that it reduced the severity of the recession, but the recession was less severe than the Great Depression. d. We can not be sure that it reduced the severity of the recession because the recession was more severe than the Great Depression.
Which of the following total cost functions suggests the presence of a natural monopoly?
A) TC = 2Q B) TC = 100 + 2Q C) TC = 100 + 2Q2 D) All of the above.