c. methods to eliminate scarcity. d. methods to influence consumers’ needs and wants. 3. Opportunity cost is: a. the money a business loses in a bad investment. b. the value of the best foregone opportunity.
In a limited partnership, the limited partners are liable only for the amount of their investment in the partnership; however, the limited partners typically have no control 3- Corporations. It has three major advantages: 1. Unlimited life, 2. Easy transferability of
One argument that has risen is the interference within neighbor hoods. For example a neighborhood in southwest Detroit could see thousands of more trucks pass by, and could have the neighborhood completely rearranged (3). Another negative that the new bridge could bring is the amount of money that will be used from Michigan and Canada. If tolls are what plan on paying it back it could took much longer than anticipated. A special interest group who are not in favor of the proposal is Manuel Moroun who is the owner of the ambassador bridge along with the Detroit international bride
| Advantage | Disadvantage | Sole proprietorship: | -easily and inexpensively formed-subject to few government regulations-income not subject to corporate taxation | -difficult to obtain capital needed for growth-unlimited personal liability-life of proprietorship limited to life of founder | Partnership: | -easily and inexpensively formed-subject to few government regulations-income not subject to corporate taxation | -difficult to obtain capital needed for growth-unlimited personal liability-life of proprietorship limited to life of founder | Corporation | -unlimited life-easy transferability of ownership interest-limited liability | -corporate earnings may be subject to double taxation- more complex and time- consuming than creating a proprietorship or a partnership | c. How do corporations go public and continue to grow? What are agency problems? What is corporate governance? If a corporation continues to grow, it can raise additional funds through an initial public offering (IPO) by selling stock to the public at large. Agency problems occur when the managers of a corporation do what’s in their own interest rather than that of the company.
e. Third World Countries are more productive than the U.S.. 2. Productivity can be increased in a manufacturing environment by: a. increasing production efficiency by increasing the standard times for jobs. b. reducing production labor costs and material costs. c. increasing the number of goods produced while holding all production costs constant. * d. only (b) and (c) e. (a), (b), and (c) 3.
Capitalism mostly has a "free market" economy, which means people buy and sell things by their own judgment. Opposingly, socialism is an economic system characterised by a kind of society where people work together to get a fair standard of living (TheFreeDictionary, 2013). Socialists believe capitalism is bad for society and the government is responsible for reducing it via programs that benefit the poor such as free public education, free or subsidized healthcare, higher taxes on the rich. In contrast, capitalists believe that government does not use economic resources as efficiently as private enterprise and therefore society is better off with the free market determining economic winners and losers (Diffen, 2013). In capitalism, the market determines price, including the price of labour.
Profit maximization C. Agency theory D. Social responsibility 2. Jensen and Meckling showed that __________ can assure themselves that the __________ will make optimal decisions only if appropriate incentives are given and only if the __________ are monitored. A. principals; agents; agents B. agents; principals; principals C. principals; agents; principals D. agents; principals; agents 3. __________ is concerned with the maximization of a firm's earnings after taxes. A.
Running head: OPPORTUNITY COST, THE VALUE OF THE BEST 1 ALTERNATIVE FORGONE IN MAKING ANY CHOICE Opportunity Cost, the Value of the Best Alternative Forgone in Making any Choice Authors Note This paper was prepared for Microeconomics OPPORTUNITY COST, THE VALUE OF THE BEST 2 ALTERNATIVE FORGONE IN MAKING ANY CHOICE Abstract This paper explores the economic principles of cost opportunity. “Scarcity of resources is one of the more basic concepts of economics. Scarcity necessitates trade-offs, and trade-offs result in an opportunity cost. While the cost of a good or service often is thought of in monetary terms, the opportunity cost of a decision is based on what must be given up (the next best alternative) as a result of the decision. Any decision that involves a choice between two or more options has an opportunity cost.” Alternate decisions based on wants and needs are valued in a way to “every choice that has an opportunity cost and opportunity costs affect the choices people make.
Answer: C For an imperfectly competitive firm: A) total revenue is a straight, upsloping line because a firm's sales are independent of product price. B) the marginal revenue curve lies above the demand curve because any reduction in price applies to all units sold. C) the marginal revenue curve lies below the demand curve because any reduction in price applies to all units sold. D) the marginal revenue curve lies below the demand curve because any reduction in price applies only to the extra unit sold. Answer: C For a nondiscriminating imperfectly competitive firm: A) the marginal revenue curve lies above the demand curve.
C) choices made by people faced with scarcity. D) inflation, unemployment, and economic growth. Answer: C 2) Which of the following is not a factor of production? A) money B) human capital C) physical capital D) labor Answer: A 3) An arrangement that allows buyers and sellers to exchange things is called: A) a contract. B) a market.