Chap 7 prac test micro econ

Chap 7 prac test micro econ - Chap 7 "Self-Study...

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Chap 7 "Self-Study Quiz" Print this page Site Title: Welcome to Economics, 1/e Book's Title: Economics, 1/e Book's  Author: Hubbard/O'Brien Location on  Site:  Chapter 7 > Self-Study Quiz Date/Time  Submitted: October 29, 2007 at 9:11 PM  (EDT) Summary of Results  23% Correct  of 40 questions:   9 correct:  23%  31 incorrect:  78%  More information about scoring   1. What must entrepreneurs do in order to succeed? Your Answer: All of the above.     Correct. To succeed, entrepreneurs must meet consumer wants by producing  new or better goods and services, or by finding ways of producing existing  goods and services at a lower cost so they can be sold at a lower price. To  succeed, entrepreneurs also need access to sufficient funds, and they must be  able to efficiently organize production.   2. Which of the following sets of firms are likely to be partnerships? Your Answer: All of the above.   Correct Answer: Law and accounting firms.    Incorrect. Read page 200 in the textbook.   3. In which of the following cases is there a legal distinction between the personal  assets of the owners of the firm and the assets of the firm? Your Answer: Sole proprietorships.   Correct Answer: Corporations.     Incorrect. Read page 200 in the textbook.   4. In the United States, how many times are corporate profits taxed?
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Your Answer: Often more than three times.   Correct Answer: Twice.    Incorrect. Read page 201 in the textbook.   5. Which type of firms account for the majority of the profits earned by different  business organizations in the United States in 2004-2005? Your Answer: Corporations.     Correct. Corporations account for a majority of the total revenue and profits  earned by businesses.   6. How much of the total corporate profits in the United States is earned by large  firms? Your Answer: 99% of all U.S. corporate profits.   Correct Answer: More than four-fifths of all U.S. corporate profits.     Incorrect. Refer to figure 7-1 on page 202 in the textbook.   7. What term do economists use to refer to the conflict between the interests of  shareholders and the interests of top management? Your Answer: Capture theory.   Correct Answer: A principal-agent problem.     Incorrect. Read about the structure of corporations and the principal-agent  problem on page 202 in the textbook.   8. Which of the following refers to a flow of funds from savers to firm through  financial markets? Your Answer:
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Chap 7 prac test micro econ - Chap 7 "Self-Study...

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