Country A and Country B initially have the same real GDP per capita. Country A experiences no economic growth, while Country B grows at a sustained rate of 5 percent. In 14 years, Country A's GDP will be approximately ____ that of Country B
a. one-fourth
b. one-half
c. double
d. triple
b
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Consider a price ceiling imposed on a monopoly. For what quantities will the monopoly's new marginal revenue curve be horizontal at the ceiling price?
a. For quantities where the demand curve lies above the ceiling price. b. For quantities where demand is elastic. c. For quantities where marginal cost is rising. d. Marginal revenue will be constant and equal to the ceiling price for all quantities.
You want to invest in a firm whose profits show small fluctuations throughout the business cycle. Which of the following would you invest in?
A) A corporation that depends heavily on business fixed investment B) A corporation that depends heavily on residential investment C) A corporation that depends heavily on consumer nondurables D) A corporation that depends heavily on consumer durables
Unit taxes cause shifts, while ad valorem taxes cause pivots.
A. True B. False C. Uncertain
Why is it that only a small percentage of American firms are incorporated?
a. Corporate debt as stockholder's liability. b. Small size of firms. c. Unlimited liability. d. Inability to outlast associated individuals.