The concept of limited liability says a stockholder of a corporation:
A. cannot lose more than his/her investment.
B. cannot receive dividends that exceed his/her investment.
C. is only responsible for any taxes that the corporation may owe but not its other debts.
D. is liable for the corporation's liabilities, but nothing more.
Answer: A
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The U.S. unemployment insurance program
A) decreases the level of frictional unemployment. B) pays the unemployed a benefit equal to twice the average wage. C) increases the amount of time the unemployed spend searching for a job. D) eliminates structural unemployment.
A major tax overhaul is more likely to be in the public interest that a small tax reform
a. True b. False
In the first years of a professional athlete's career, the athlete is "under reserve," which means that he or she cannot negotiate with other teams. This implies that, everything else equal,
A) the player's salary is probably higher than it otherwise would be. B) the player's salary is probably lower than it otherwise would be. C) the player's salary is probably the same as it otherwise would be. D) the player is not hired by the team.
Which of the following might be a method that the government could use to correct a negative externality?
A) an effluent fee on waste from the production of goods that create negative externalities B) government subsidies to producers of goods that create negative externalities C) financing additional production of goods that create negative externalities D) encouraging overallocation of resources of production of goods that create negative externalities