Macro Sample Test _3 Ch 4,5

Macro Sample Test _3 Ch 4,5 - MacroTest#3Ch4,5 Student 1....

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Macro Test #3 Ch 4,5 Student: ___________________________________________________________________________ 1. A group of three plants which is owned and operated by a single firm and which consists of a farm growing wheat, a flour-milling plant, and a plant which bakes and sells bread would best be an example of a: A. Multiplant firm B. Vertically integrated firm C. Partnership D. Conglomerate 2. The type of business that is most common is the: A. Partnership B. Corporation C. Conglomerate D. Sole proprietorship 3. Which of the following is correct? A. A person who purchases a corporate bond is lending money to a corporation B. A person who purchases a corporate bond is buying ownership in the corporation C. A person who purchases a share of corporate stock is guaranteed to earn dividends D. A person who purchases a share of corporate stock will find it difficult to resell it 4. Which of the following is correct? A. A person who purchases a corporate bond is borrowing money from a corporation B. A person who purchases a corporate stock is buying ownership in the corporation C. A person who purchases a corporate bond is guaranteed to earn dividends from the stock D. A person who purchases a corporate stock gets the option to buy other shares at lower prices 5. One principal advantage of the corporations is that owners: A. Are not taxed for income received B. Always control the company C. Are sole proprietors D. Have limited liability
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6. A paper plant creates a chemical waste which it dumps it into a nearby river. If this situation applied to most paper plants in the nation, then you can conclude that: A. The demand for the paper is greater than the supply of paper B. The supply of paper is less than the demand for paper C. The quantity of the paper is too high because the supply of the paper fails to incorporate all costs of production D. The market price of paper is too high because consumers are not able to pay enough money to get pollution- free paper 7. Which is an example of a positive externality? A. A neighbor's dog who likes to bark and run in your yard B. A sewage treatment plant that emits strong odors C. A flood control dam that provides a recreational lake D. A private parking garage next to a public library 8. Is it reasonable that debris removal on streets after a hurricane is a service often provided by local governments? A. Yes, in some cases it is prohibitively expensive for private companies to charge and collect from all of those
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This note was uploaded on 06/05/2009 for the course ECO ECO2013 taught by Professor Jominy during the Summer '08 term at Broward College.

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Macro Sample Test _3 Ch 4,5 - MacroTest#3Ch4,5 Student 1....

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