Torrie is thinking of starting up a small business selling hand-painted wine glasses. She is considering setting up her business as a sole proprietorship. What is one advantage to Torrie of setting up her business as a sole proprietorship?
A) As a sole proprietor, Torrie would face limited liability.
B) As a sole proprietor, Torrie would have the ability to share risk with shareholders.
C) As a sole proprietor, Torrie would have both ownership and control over the business.
D) All of the above would be advantages of setting up her business as a sole proprietorship.
Answer: C
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An upward-sloping short-run aggregate-supply curve is represented by which of the following equations?
a) Quantity of output supplied = Natural level of output + a(Actual price level + Expected price level) b) Quantity of output supplied = Natural level of output - a(Actual price level - Expected price level) c) Quantity of output supplied = a(Natural level of output) + (Actual price level - Expected price level) d) Quantity of output supplied = Natural level of output + a(Actual price level - Expected price level)
Why does the government allow some markets to be monopolized by granting patents?
a. to promote a more equal distribution of income b. to correct for negative externalities c. to promote technological progress d. to ensure lower prices for consumers in the short run