In China, firms owned by the government are known as A) state-owned enterprises (SOEs). B) government enterprises. C) corporations. D) government owned partnerships. ANSWER A
Date: September 9th, 2020
Since 1999, the number of small state-owned enterprises (SOEs) in China has A) decreased, but the large SOEs continue to hold a large proportion of industrialized assets. B) increased, but large SOEs has decreased. C) decreased along with the large SOEs. D) remained unchanged. ANSWER A
Date: September 9th, 2020
An increase in unearned income always creates a disincentive to work. Indicate whether the statement is true or false ANSWER False. The effect on labor supply will also depend on the individual’s preferences towards work (leisure).
Date: September 9th, 2020
Recent data has shown that income and volunteer time are positively related. Assuming that volunteer time is included in leisure time, what could explain this observation? A) Higher income individuals view leisure as a normal good such that the income effect dominates the substitution effect. B) Higher income individuals view leisure as a normal good […]
Date: September 9th, 2020
Which entity produces the greatest proportion of U.S. gross national product? A) government B) non-profit organizations such as hospitals C) firms D) universities ANSWER C
Date: September 9th, 2020
What is one of the biggest differences between a sole proprietorship and a corporation? A) Sole proprietorships offer stock. B) Corporation shareholders elect the managers of the firm. C) Sole proprietorships have limited liability. D) Corporations are the only profitable firms. ANSWER B
Date: September 9th, 2020
A tax cut will unambiguously lower income-tax revenue. Indicate whether the statement is true or false ANSWER False. It depends on how the quantity of labor supplied responds to the increase in the after-tax wage rate. If the income effect dominates, the quantity of labor supplied falls and so will tax revenue. If the […]
Date: September 9th, 2020
Firms maximize profit when A) the additional benefit from producing a good equals the additional cost of producing that good. B) MR = MC. C) the derivative of the profit function with respect to output is zero. D) All of the above. ANSWER D
Date: September 9th, 2020
An organization that converts inputs (like Labor, Capital etc.) into output can be a A) firm. B) sole proprietorship. C) corporation. D) All of the above. ANSWER D
Date: September 9th, 2020
Technological efficiency is A) a necessary and sufficient condition for profit maximization. B) a sufficient but not necessary condition for profit maximization. C) a necessary but not sufficient condition for profit maximization. D) a theoretical construct with little connection to the real world. ANSWER C
Date: September 9th, 2020
