Which of the following leads to a fundamental difficulty for stabilization policy?
A. Time lags in policy decisions
B. Presence of shock absorbers in the economy
C. Absence of data on the effectiveness of policy measures
D. Existence of self-correcting mechanism
Answer: A
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If the personal assets of the owners cannot be claimed if the business is bankrupt, the owners are said to have
A) a partnership type of business. B) unlimited liability. C) a proprietorship type of business. D) limited liability.
After a corporate merger, Rebecca Jalamid became the CEO of a monopoly firm. She was surprised to learn that one benefit of being a monopoly was that her company
a. could charge as high a price as desired b. was in a good position to capture the fruits of any innovation c. received increased scrutiny from government regulators d. started to attract potential competitors motivated to get a share of the economic profits of Rebecca's company e. contributed to the deadweight loss in the economy