Ch.16 - 0% (0 out of 50 correct) 1. The functional...

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0% (0 out of 50 correct) 1. The functional distribution of income refers to the: A. division of income between personal taxes, consumption expenditures, and saving. B. division of income on the basis of industry sources, for example, agriculture, transportation, mining, etc. C. distribution of income to basic resource classes, that is, wages, rents, interest, and profits. D. way income is distributed among specific households or spending units. 2. The largest functional share of the national income consists of: A. wages and salaries. B. interest and rental income. C. proprietors' income, that is, the income of unincorporated businesses. D. corporate profits. 3. A group of chain stores operating at, say, the retail level--for example, J.C. Penney or Kmart--is an illustration of: A. an integrated combination. B. a conglomerate combination. C. a horizontal combination. D. a vertical combination. 4. A firm which owns plants at many different stages in the production process--for example, a steel producer which owns coal and ore mines, coke
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ovens, rolling mills, and so forth--is an illustration of: A. a vertical combination. B. a horizontal combination. C. a conglomerate combination. D. a diagonal combination. 5. The "separation of ownership and control" in a corporation means that: A. hired managers play a larger role in determining company policy than do a corporation's legal owners. B. the ownership of corporations is becoming increasingly concentrated in the hands of a few common stockholders. C. a firm's board of directors has no power over hired managers. D. stockholders have lost their voting privileges. 6. The U.S. economy is called "mixed capitalism" because: A. the products of many business enterprises are used partly by businesses and partly by consumers. B. the answers to the Five Fundamental Questions are to some extent determined by government and partly by private individuals and businesses. C. the capital of most business enterprises is furnished from Federal funds. D. a large percentage of business enterprises are jointly owned by government and private business. 7. The Pure Food and Drug Act is an illustration of: A. governmental provision of public goods. B. the redistributional function of government.
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C. governmental provision of a suitable legal framework for the market system. D. governmental action designed to enhance competition. 8. Spillover costs arise: A. when firms pay more than the opportunity cost of resources. B. when the demand curve for a product is located too far to the left. C. when firms "use" resources without being compelled to pay for them. D. only in capitalistic societies. 9. When spillovers cause substantial positive benefits to accrue to third parties, a competitive market: A. underallocates resources to the production of the good. B. overallocates resources to the production of the good.
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Ch.16 - 0% (0 out of 50 correct) 1. The functional...

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