MACRO FINAL

Suppose you own $50,000 of personal property , $5000 of stock in General Statics Corporation, and $20,000 of government bonds. In General Statics goes bankrupt, the most you could lose is:

$5,000.

In economics, a group of firms that produce identical or similar products is called a(n):

Industry.

If the aggregated income of household is $300 billion, consumption is $210 billion, and personal taxes are $60 billion, Then personal savings:

Is $30 billion.

The division of US businesses into the categories of proprietorships, partnerships, and corporations is based on:

Legal considerations.

If the corporation goes bankrupt, its stockholders will lose:

Only the value of their stock.

The advantages of the corporate form of business include:

The ability to raise financial capital by selling stocks and bonds.

A firm that produces a single product but own plans in many different stages of the production process - for example, a steel producer that aren't iron ore mines and rolling mills - best illustrates a:

Vertically integrated firm.

The largest functional share of the national income consists of:

Wages and salaries.

Economists define durable goods as those products are expected to last at least ___ year(s):

3

The personal distribution of income in the United States is such that the richest fifth receives about ___ person of personal income.

50.

Limited liability applies to:

All corporations.

The owners of a firm face unlimited liability for the firm's debts in:

Both a proprietorship and a partnership.

A firm compromise of plants for units operating in different industries, say, beer and theme parks, best illustrates:

Conglomerate.

Households in the aggregate use the largest share of their total income to:

Consume.

The corporate form of business enterprise has promoted the development of large-scale business operations because:

Corporations have been able to marshal large amounts of financial capital through the sale of stocks and bonds.

Which form of business enterprise accounts form the largest portion of total output?

Corporations.

Income data that show how total income is distributed as wages, rents, interests, and profits described the:

Functional distribution of income.

In economics, physical physical establishment such as a factory, farm, mine, store, or warehouse that performs one or more functions of fabricating and distributing goods is called a(n):

Plant.

In 2007, personal savings compromise of what portion of the US household income?

Positive one percent.

Corporate bonds are:

Promises by a corporation to repay loan.

The three basic legal forms of business enterprise are:

Proprietorship, partnerships, corporations.

Which form of business enterprise accounts for the largest number of firms in the United States?

Proprietorships.

The majority of the personal consumption expenditures go to purchase:

Services.

Stocks are:

Shares of ownership of a corporation.

Economists define savings as:

The part of after-tax income which is not consumed.