economic
36.Which of the following is a disadvantage of the corporate form of business organizationA) Limited liability
B) Unlimited liability
C) Double taxation
D) Limited financing
37.Economic profit can be calculated as A) total revenue - explicit costs.
B) total revenue - fixed costs.
C) total revenue - explicit costs - implicit costs.
D) total revenue - implicit costs.
38.The most common type of firm in the United States is the A) corporation.
B) proprietorship.
C) partnership.
D) limited partnership.
39.Corporations account for A) the largest amount of taxes paid to the U.S.government.
B) the largest proportion of business revenues generated in the United States.
C) the largest number of firms in the United States.
D) the smallest amount of revenues in the United States.
40.The price elasticity of demand is a measure of A) the demand for a product holding prices constant.
B) the quantity demanded of a good at a given price.
C) the horizontal shift in the demand curve when the price of a good changes.
D) the responsiveness of the quantity demanded of a good to a changes in the price of the good.
41.If price decreases by 10 percent and quantity demanded increases by 30 percent,the price elasticity of demand will be A) 30.
B) 3.
C) 0.333.
D) 300.
42.A
5 percent rise in the price of a good leads to a 5 percent decrease in
quantity demanded.The absolute price elasticity of demand is A) 0.1.
B) 10.
C) 1.0.
D) 5.
43.Suppose that the absolute price elasticity for cookies equals 0.53.We could then say that the demand for cookies is A) unit elastic.
B) elastic.
C) inelastic.
D) perfectly elastic
44.When demand is perfectly inelastic,the demand curve will be A) downward sloping
B) vertical.
C) upward sloping.
D) horizontal.
Income elasticity is defined as
A) change in quantity demanded divided by change in income.
B) percentage change in demand divided by percentage change in income.
C) percentage change in income divided by percentage change in quantity demanded.
D) change in income divided by change in demand.
46.If more buyers came into the market for a good,we would expect to see the market demand curve A) reflect a positive relationship between price and quantity demanded.
B) shift upward and to the right.
C) remain unchanged since none of the determinants of individual demand changed.
D) shift downward and to the left.
47.
Suppose
that short skirts that were fashionable in the 1990s become
unfashionable in the late 2000s.If other factors were held constant,
then there would be
A) a leftward movement along the supply curve.
B) a rightward movement along the supply curve.
C) a leftward shift in the demand curve.
D) a rightward shift of the demand curve.