Managerial Economics Quiz

Multiple Choice 5 points Question The personal distribution of income refers to the:
Answer division of income between personal taxes, consumption expenditures, and saving. division of income on the basis of industry sources, for example, agriculture, transportation, and mining. distribution of income to basic resource classes, that is, wages, rents, interest, and profits. way income is distributed among specific households or spending units.

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Multiple Choice Question The personal distribution of income in the United States is such that the richest fifth receives about _____ percent of personal income.
Answer 30 40
Answer 1 3 5 10

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Multiple Choice Question In economics, an organization that employs resources to produce goods and services for profit and operates one or more plants is called a(n):
Answer industry. shop. conglomerate. firm.

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Multiple Choice Question A firm comprised of plants or units operating in different industries, say, beer and theme parks, best illustrates a:
Answer vertically integrated firm. multinational corporation. multiplant firm. conglomerate.

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Multiple Choice Question The owners of a firm face unlimited liability for the firm's debts in:
Answer a corporation. a partnership, but not in a proprietorship. a proprietorship, but not in a partnership. both a proprietorship and a partnership.

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private goods. public goods. consumption goods.

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Multiple Choice Question Unlike a private good, a public good:
Answer produces no external benefits or external costs. has no opportunity costs. has benefits that are available to all, regardless of payment. is characterized by rivalry and excludability.

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Multiple Choice Question Government rather than private firms must provide economically desirable public goods because:
Answer high marginal costs preclude their production in the private sector. public goods have characteristics that make it difficult or impossible for private firms to produce them profitably. public goods have marginal costs that exceed marginal benefits. the law of increasing opportunity costs applies only to private goods.

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