Quiz chp.3,4,5 - (1) 36 In economics, a group of firms that...

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( 1 ) 36 . In economics, a group of firms that produce identical or similar products is called a(n): industry. 37.In economics, a business establishment that owns one or more plants is called a(n): firm. ( 1 ) 38 . A group of plants that is owned and operated by a single firm and that consists of oil fields, refineries, and gasoline stations best illustrates a: vertically integrated firm. ( 0 ) 39 . Which form of business enterprise accounts for the largest number of firms in the United States?
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proprietor ships ( 0 ) 40.Which form of business enterprise accounts for the largest proportion of total output? corporatio ( 1 ) 41 . The advantages of the corporate form of business include:
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the ability to raise financial capital by selling stocks and bonds. ( 0 ) 42 . If a corporation goes bankrupt, its stockholders will lose: only the value of their stock. ( 0 ) 43 . An owner's liability for the debts of a business is:
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unlimited in a partnershi p. ( 1 ) 44 . Stocks are: shares of ownershi p of a corporatio n. ( 1 ) 45 . Corporate bonds are: promises by a corporatio n to repay a loan. ( 1 ) 46 . As it relates to corporations, the principal-agent problem is that:
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the goals of the corporate managers (the agents) may not match the goals of the corporate owners (the principals ). ( 1 ) 47 . In corporations, owners are __________________ and managers are ________________. principals ; agents. ( 1 ) 48 . Government may lessen income inequality by:
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doing All of these. ( 1 ) 49 . Negative externalities arise: when firms "use" resources without being compelle d to pay for their full costs. ( 0 ) 50 . Positive externalities benefits refer to:
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benefits that accrue to parties other than the producer and buyer of a good. ( 1
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This note was uploaded on 10/19/2009 for the course ECON 2010 taught by Professor Staff during the Spring '08 term at Utah Valley University.

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Quiz chp.3,4,5 - (1) 36 In economics, a group of firms that...

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