Exam 2: Markets and Economies

Pawsabilities is a dog grooming service entirely owned by Clark, Art, and Fred. What type of firm is Pawsabilities?

Which of the following is an advantage that a limited liability corporation has but a corporation does not?

What is earned by households in exchange for providing capital?

Which of the following statements about communism is true?

Which of the following statements is correct about the role that is played by the government in the circular flow diagram?

What is a stock?

Which of the four resources of production does an economist consider wheat to be?

A ______ is a payment of a portion of a corporation's profits that is made to a shareholder of the corporation.

Which of the following questions is NOT one of the fundamental economic questions?

Which of the following is a key distinction between corporations and limited liability corporations (LLCs)?

Groups of people who live together and share income are called:

Firms sell stock to:

The type of firm that is a distinct legal entity that is separate from the entrepreneur and other owners but cannot sell stock is a:

Any enterprise that employs the factors of production and sells goods and services is called:

In the circular flow diagram, _____ are traded in product markets, and _____ are traded in factor markets.

In the circular flow model, a firm:

If the goods and services that are produced in a society are allocated in such a way that the ones who receive those goods and services are the ones who value them the most, what economic question has been answered?

In order to purchase goods and services and factors of production, a government must:

Which of the following statements about socialism is true?

List the different types of spending that are done by the government in the circular flow diagram.