How do unlimited and limited liability differ?
What will be an ideal response?
Unlimited liability means that if a firm is bankrupt, lenders can take the owner's personal wealth. Limited liability means that the owner can lose only what is invested in the firm.
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Which of the following are NOT included among Gordon's criticisms of Friedman's fooling model?
A) Workers buy many goods on a weekly basis and thus could discover quite quickly that prices had risen. B) Workers could discover movements in the aggregate price level fairly easily. C) The model relied on a non-market-clearing explanation of the labor market. D) Workers would predict higher prices if policies that led to higher prices in the past were used again.
Growth in a production possibilities curve diagram is shown as: a. a movement along the curve to the southeast. b. a movement along the curve to the southwest. c. an outward shift of the curve
d. an inward shift of the curve.