True False Flashcards
T/F When a nation byes more goods from other nations than it sells to them, that nation has a favorable balance of trade
False
T/F Eastern European nations pioneered the economic philosophy of mercantilism
False
T/F with capitalism, the government generally has more control over the individual business owners
False
T/F public goods are usually provided by government because business firms could not supply them and make a profit
True
T/F Donald trump is a socialist
False
T/F exploration is not one of the 5 points of mercantilism
False
T/F the full title of Adam Smith’s landmark economic treaties is: “an inquiry into the nature and cause of nations”
False
T/F according to the classical definition, liberalism does not equal Liberty
False
T/F one of the three functions of government according to Adam smith is “to protect its citizens from foreign invasion”
True
T/F because it denies the legitimacy of government, radical capitalism is approved by scripture
False
T/F a partnership is a business enterprise with two or more persons as the owner
True
T/F A limited partner holds all management responsibilities and makes all business decisions
False
T/F a corporation is not a separate entity recognized by law
False
T/F surety is the act of becoming security for or pledging to undertake another debt
True
T/F A business firm with one owner is called a sole proprietorship
True
T/F two of the advantages of a partnership are greater management skills and greater possibilities of keeping competent employees
True
T/F two disadvantage of a sole proprietorship are unlimited personal financial liability and limited life
True
T/F scripture warns agents becoming surety for another’s debts
True
T/F two of the disadvantages of incorporation are lower taxes and less government regulation
False
T/F corporations are the most common form of business original in the U.S
False
T/F the S&P 500 is intended to give a broad perspective on business in the U.S.
True
T/F those who actively buy and sell stocks for the purpose of taking advantage of short term price changes are engaging in speculation
True
T/F when stock prices rise in an industry or across the entire market simply because of expectations and they rise in excess of the corporations true value, it’s called a speculative bubble
True
T/F a group of stocks which are organized to help identify trends in certain industries are called stock indexes
False
T/F a group of stocks which are organized to help identify trends in certain industries are called stock indexes
False
T/F an IPO is known as an initial private offerings
False
T/F the NASDAQ is the largest stock exchange in the US that has no trading floor
True
T/F the S&P 500 tracks industrial production along with other type of industries
True
T/F “buy high, sell low”
False
T/F stock exchanges originated in Ireland and Belgium
False
T/F the first stock exchange in the US developed in Philadelphia in 1790
True
T/F a loose oligopoly is one in witch the bottom four firms account for 50-75% of industry total sales
False
T/F an oligopoly composed of more than two business is called a duopoly
False
T/F collision is when companies agree to not work together
False
T/F perfect competition exists when there are many producers selling identical products
True
