An increase in congestion costs associated with a public good provided through clubs will _____
a. lead to new clubs being formed
b. lead to a reduction in the optimal size of the club
c. be unrelated to congestion costs
d. lead to fewer clubs being formed
b
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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 disadvantage to Torrie of setting up her business as a sole proprietorship?
A) As a sole proprietor, Torrie would face unlimited liability. B) As a sole proprietor, Torrie would be subject to significant rules and regulations. C) As a sole proprietor, Torrie would be taxed twice. D) As a sole proprietor, Torrie would not have control of the business.
Government laws and policies need to be uniformly enforced. But this leads to all of the following problems, except:
A. Inflexibility B. Massive paperwork C. Excessively detailed rules D. Haphazard application