What are the main advantages and disadvantages of organizing a business as a corporation?
What will be an ideal response?
Ques. 2How is a contestable market similar to a perfectly competitive one?
What will be an ideal response?
Ques. 3What does diminishing marginal utility mean?
What will be an ideal response?
Ques. 4A major function of incentive payments, guarantees, and signals is to enable markets to overcome the problem of
A) irrational forecasting.
B) efficient forecasting.
C) private information.
D) public information.
Ques. 5In the above figure, the long-run effect of providing university education at no charge to all qualified applicants would be to shift the curve SH
A) and the curve SL leftward.
B) and the curve SL rightward.
C) leftward and the curve SL rightward.
D) rightward and the curve SL leftward.
Ques. 6What is the main advantage and the main disadvantage of organizing a businesses as either a proprietorship or as a partnership rather than as a corporation?
What will be an ideal response?
Ques. 7In a competitive equilibrium, the total consumer surplus must equal the total producer surplus.
Indicate whether the statement is true or false
Ques. 8Advertising costs are ________ costs and the per unit cost of advertising ________ as production increases.
A) fixed; increases
B) variable; increases
C) fixed; decreases
D) variable; does not change
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