Business Economics PDF

Which of the following types of businesses consist of two or more people that pool their resources and knowledge together? Which of the following types of businesses consist of two or more people that pool their resources and knowledge together? - Partnerships What is one of the primary benefits...

Which of the following types of businesses consist of two or more people that pool their resources and knowledge together? Which of the following types of businesses consist of two or more people that pool their resources and knowledge together? - Partnerships What is one of the primary benefits with forming a corporation? - Limited liability Not-for-profits are similar to other types of businesses however, their main advantage is that - Profits are not taxed In what year was the Internal Revenue Code amended to prevent non-profits from endorsing or opposing political candidates? - 1954 Which church took out a full-page ad in the USA Today and the Washington Times newspapers advocating against voting for a president? - The Church at Pierce Creek. Which of the following types of costs are not related to production costs and include the cost of negotiating an agreement, and enforcing compliance? - Transaction cost Ronald Coase created one of his most important pieces of work titled "The Problem of Social Cost" in what year? - 1960/1961 For simple, repetitive transactions that involve no commitment to specialized resources, the transaction costs of market coordination tend to be - Low The primary gains from expansion include a stable framework, reduction of opportunism, and the ability to - Adjust to unexpected changes The primary losses from expansion include the loss of economies of scale, greater bureaucratization, and - The loss of higher power incentives. High-power incentives are incentives that take the form of a - Claim to the residual profit, resulting from a task, combined with bearing the risk of any loss.  What are the mechanisms through which the market economy selects superior ways of doing things and rejecting inferior ways? - Losses and profits According to Schumpeter, the source of innovation and technological change is derived from competition among - Entrepreneur Both reasons for regulation, the theory of market failure and the public-choice theory of rent-seeking, explain the value of those regulations in terms of the public benefit of those government interventions. - True What two theories does the text cite for government regulation of markets? - market failure effects on efficiency and public choice rent seeking. Static efficiency measures how well an economy performs at a given time with given resources and technology; dynamic efficiency measures the rate of growth in production possibilities and prosperity. - True Much of traditional economic theory accepts that perfectly competitive markets are the most efficient in the static sense. - True Joseph Schumpeter explained that competition among actual entrepreneurs encourages dynamic efficiency through innovation and technological change. - True Traditional antitrust policy tends to oppose a Jeffersonian preference for dispersed economic power. - True  Antitrust laws attempt to regulate market structure and the competitive behavior of firms. - True According to antitrust reformers, traditional antitrust theory ignores static economic efficiency. - False An industry where one producer can serve the entire market and also minimize costs of production is a  - Natural monopoly What is the problem of an unregulated natural monopoly, in terms of economic efficiency? Its profit-maximizing price is \_\_\_\_\_ - Above marginal cost In the real world (compared to in theory), which method of regulating a natural monopolist is more practical? - regulating its price