1) The objective of the household is to a

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1) The objective of the household is to

a. maximize household wealth

b. own as much land as possible

c. save as much money as possible

d. acquire as many goods as possible

e. maximize utility

2. Which resource generates the largest share of the income in the United States?

a. labor

b. land

c. capital

d. entrepreneurial ability

e. money

3.Which of the following is an example of a durable good?

a. food prepared at home

b. food eaten at a restaurant

c. high-fashion clothing

d. binoculars

e. motor oil

4.Which of the following is a major advantage of the sole proprietorship?

a. separation of ownership and control

b. limited liability for business debt

c. transfer ability of ownership and firm continuity over time

d. ease of start-up

e. ease of obtaining financing

5. In terms of the numbers of firms in the U.S. economy, the most common type of firm is the

a. corporation

b. partnership

c. sole proprietorship

d. nonprofit organization

e. limited partnership corporation

6.Owners of corporations are referred to most frequently as

a. entrepreneurs

b. lien holders

c. limited partners

d. managers

e. stockholders

7,In terms of total sales, the dominant form of business firm in the U.S. economy is the

a. corporation

b. sole proprietorship

c. partnership

d. nonprofit organization

e. limited partnership corporation

8.Despite specialization and comparative advantage, household production still exists because for some

a. the opportunity cost of production at home is greater than the cost of purchasing the good m the

b. production at home is less costly than purchasing the good in the market

c. the value of home production exceeds the sunk cost of home production

d. the value of home production is ignored

e. food and clothing expenditures represent a small portion of their total budget