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One disadvantage of a sole proprietorship as a form of business organization is that? Owners of sole proprietorships can lose all their personal assests if the business is sued or fails. TERM 2 Brian is the sole proprietor ownder of Long Voyage Software. He started the business with an initial investment of $80,000. A faulty map causes one customer to get hopelessly lost. after her rescue and recuperation, she sues Long Voyage for $5,000,000. which of the following is true? DEFINITION 2 if $5,000,000 is awarded, brian is personally responsible for paying all of it. TERM 3 all of the following are advantages of partnerships except one. which one is the exception? DEFINITION 3 Their liability is limited by each partners share of the business TERM 4 stockholders share in the profits of a corporation DEFINITION 4 in proportion to their ownership of stock TERM 5 You own stockworth an estimated $1 million in the LPL corporation. in addition, you have personal assests worth another $2 mllion. LPL becomes insolvent, with debts exceeding assests by $15 million. your personal wealth will decline by? DEFINITION 5 $1 million
in general, elasticity measures the responsiveness of decision makers to changes in prices, income or other variables TERM 7 price elasticity of demand is defined as DEFINITION 7 the percentage change in quantity demanded divided by the percentage change in price TERM 8 the midpoint formula of elasticity solves the problem of DEFINITION 8 which price or quantity to use as a base for calculating percentage changes TERM 9 demand is said to be elastic whenever DEFINITION 9 price elasticity has an absolute valur greater than 1 TERM 10 when demand is price elastic, total revenue is DEFINITION 10 a directly related quantity demand
if a good is inferior, then the income elasticity of demand for that good is? negative TERM 17 suppose the cross-price elasticity of demand between quinces and muskmelons is 5. which of the following must be true? DEFINITION 17 quinces and muskmelons are substitutes TERM 18 a curve representing combinations of two goods that yield equal totaly utility is an DEFINITION 18 indifference curve TERM 19 a consumers indifference map is a depiction of DEFINITION 19 her preferences TERM 20 economists assume peoples tastes are DEFINITION 20 relatively stable over time
the law of diminishing marginal utility states that marginal utility falls as more of a good is consumed, other things constant TERM 22 which of the following illustrates the law of diminishing marginal utility? DEFINITION 22 the marginal utility of dianes second coke is greater than the marginal utility of her third coke, other things contsant TERM 23 newspaper vending machines illustrate that newspaper publishers believe DEFINITION 23 the marginal untility of a second identical newspaper is zero or less. (MU does not decrease much between the first and second unit) TERM 24 if the marginal utility is positive then total utility is DEFINITION 24 increasing TERM 25 if a good is offered to you free of charge, then you DEFINITION 25 stop consuming it when its marginal utility equal 0
which of the following is not an explicit cost? the value of the firm owners time -explicit cost is something you would write a check for TERM 32 accounting profit equals DEFINITION 32 economic profit plus implicit costs TERM 33 inputs that can be increased or decreased in the short run are called DEFINITION 33 variable inputs TERM 34 which of the following is most likely to be a fixed resource for Pauls contry fresh pies, inc? DEFINITION 34 ovens TERM 35 the short run is a period of time DEFINITION 35 during which atleast one resource is fixed
the additional output obtained by adding another unit of labor to the production process is called the marginal product of labor TERM 37 the law of diminishing returns explains why DEFINITION 37 shortrun MC and AVC curves are U-shaped TERM 38 when diminishing marginal returns set in, marginal product is DEFINITION 38 positive and decreasing TERM 39 which of the following is a fixed cose of driving a car? DEFINITION 39 license plates TERM 40 what is the relationship between marginal cost and marginal product DEFINITION 40 when marginal product increases, marginal cost falls.
