What are the advantages of setting up a corporation as opposed to a proprietorship or partnership?
What will be an ideal response?
Corporations have limited liability and a greater ability to raise funds.
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If a government raises its expenditures by $50 billion and at the same time levies a lump-sum tax of $50 billion, the net effect on the economy will be to
A. increase real GDP by $50 billion. B. increase real GDP by more than $50 billion. C. make no change in real GDP. D. increase real GDP by less than $50 billion.
Suppose people had been paying $10 for a pizza at Little Weezer's. If their demand increases to the point where they will now pay $15 for the same pizza, then
A) the marginal cost of making pizzas would tend to increase. B) the quantity supplied of pizzas would tend to increase. C) both A and B are true. D) none of the above are true.
National defense is an example of a _____________________.
Fill in the blank(s) with the appropriate word(s).
If a nation has a current account surplus and it does not have to make any inpayments or outpayments of official reserves, it must have a:
A. surplus in its capital and financial account. B. balance of payments deficit. C. balance of payments surplus. D. deficit in its capital and financial account.