Why are there so many more proprietorships than corporations, yet corporations account for so much more of the sales of business firms in the country?
What will be an ideal response?
Proprietorships are easy to form and can be run by an individual, so there can be many of them, especially in businesses in which large size is not necessary for success. However, large-scale business will usually be done by corporations because of the advantages corporations have in raising financial capital.
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A union could raise wages without causing unemployment of union members if it can increase demand for union labor. How might this goal be achieved?
What will be an ideal response?
Sometimes, the taxes with the smallest excess burden are
A. progressive. B. regressive. C. proportional. D. digressive.
If production in the economy is efficient, then changes in market prices
A. Move us to a point above the production possibilities curve. B. Move us from a point below the production possibilities curve to a point on the production possibilities curve. C. Have no effect on our position on the production possibilities curve. D. Move us along the edge of the production possibilities curve.
Monetarists argue that
A. Fiscal policy puts idle money balances to work, which reduces V. B. When there is a recession, people accumulate money balances, which increases V. C. The velocity of money increases as much as total spending falls so that MV remains constant. D. The velocity of money is constant.