Which of the following statements is a defining feature of a corporation? A)The owners of a corporation face unlimited liability on debts.

B)A corporation owns and operates units in foreign countries.

C)A corporation is created by a verbal agreement.

D)A corporation that is based on a verbal agreement is also recognized by State law.

E)A corporation has a legal identity that is separate from that of its owners.

The _____ tend to have a smaller public sector relative to the total economy. A)communist economies

B)centrally planned economies

C)socialist economies

D)market economies

E)mercantilist economies

Which of the following sectors in the economy accounted for about 70% of the spending in the U.S. during 2009? A)The government

B)Firms

C)The foreign sector

D)Investors

E)Households

Based on the fact that the companies Ford, IBM, PepsiCo, and McDonald's own and operate units in many different countries, they are categorized as: A)joint ventures.

B)sole proprietorship firms.

C)partnership firms.

D)multinational firms.

E)co-operative firms.

Which of the following is a valid difference between sole proprietorship and partnership? A)Partnerships require a written agreement while sole proprietorships do not.

B)Partnerships require a state charter while sole proprietorships do not.

C)Partnerships generate lower profits than sole proprietorships.

D)Partnerships are characterized by unlimited liability, while sole proprietorships are not.

E)Partnerships consist of two or more partners sharing the responsibility of the firm, while sole proprietorship consist of a single individual.

Which of the following is a defining feature of a multinational firm? A)It develops joint ventures with foreign firms.

B)It develops joint ventures with foreign firms.

C)It owns and operates production facilities in more than one country.

D)It employs agents in various countries to sell their products abroad.

E)It holds patents on its products and services.

In economics parlance, the term investment refers to: A)the cost of employing human capital.

B)expenditure on expense accounts of employees.

C)the expenditure incurred on salaries and rent.

D)business spending for acquiring capital goods.

E)the expenses on the purchase of stocks of a corporation.

Which of the following is true of investment spending in the U.S. economy? A)Investment spending in 2009 was higher than in 2006.

B)Investment spending was almost double of household spending.

C)Businesses had reduced expenditures on capital goods in 2008 and 2009.

D)Investment spending exhibited a more or less steady increase between 1959 and 2009.

E)Investment spending fluctuated relatively less than consumption.

Identify the international organization that makes loans to developing countries. A)The World Bank

B)The Federal Reserve

C)The World Trade Organization

D)The Industrial Development Board

E)The Bank of England

A country is categorized as a low-income economy by the World Bank if its per capita income is below: A)$1,000

B)$100

C)$10,000

D)$50

E)$5,000

According to the World Bank, low-income economies are heavily concentrated in: A)Europe and Africa

B)Europe and Asia

C)Asia and Africa

D)Asia and Australia

E)North America and Australia