A+ Answers of the following Questions

1. If a monopolist has a straight-line demand curve, then its marginal revenue curve will:
a. be the same as the demand curve
b. fall twice as quickly as the demand curve
c. lie below the demand curve at all point
d. cross the demand curve

2. As long as total utility is increasing, we know that marginal utility is:
a. positive
b. decreasing
c. increasing
d. negative

3. A key reason that our gasoline prices elevated rapidly from 2006 to 2008 was:
a. tight global supplies and high prices
b. the war in the middle east
c. greed by oil exporting countries
d. inflation

1. Which of the following best describes the overall scheme of pollution regulation in the United States? 

a. Exclusively federal law.
b. Exclusively state law with minimal federal oversight.
c. Exclusively state law, but with considerable federal oversight.
d. Primarily federal law, but considerable state law as well.

2. Which of the following is FALSE regarding federal administrative agencies? 

a. Congress typically delegates to administrative agencies the power to make laws in the form of rules and regulations.
b. Administrative agencies, such as the Occupational Health and Safety Administration, cannot conduct inspections since an inspection is a "search," which can only be conducted by the police or other law enforcement agency pursuant to a traditional criminal law search warrant.
c. Administrative agencies typically can impose civil fines after a due process hearing in which a person or business is adjudicated to be in violation of an agency rule or regulation.
d. The decisions of administrative agencies can generally be appealed to the traditional court system assuming that procedural requirements for an appeal are met.

3. “Necessaries” for minor contracts do not usually include 

a. Transportation
b. Education
c. Insurance
d. Medical Care

1. Which of the following is NOT demonstrated by a production possibility curve?
a. scarcity
b. opportunity cost
c. necessity for choice due to scarcity
d. price

2. The market price_____________ the equilibrium price
a. can be higher than, but never lower than
b. can be lower than, but never higher than
c. can be higher than, or lower than
d. is always equal to

3. The poverty line is set:
a. by the U.S. Bureau of the Census (based on family food budgets).
b. at the same income level right now as it’s been since 1982
c. so high that over 30% of all Americans are officially poor
d. by the United Nations for every country in the world

1. Barb owns Barb's Salon, which owes back rent to Capital Properties, a landlord. Barb agrees to pay a percentage of her profit each month until the debt is paid. Capital Properties is 

a. Barb's creditor and partner.
b. Barb's creditor only.
c. Barb's partner only.
d. neither Barb's creditor nor partner.


2. Alvaro and Franco are forming a corporation and preparing the articles of incorporation. What provision must be in the articles? 
a. A corporate name with an indication of "corporateness," such as "Inc."
b. The names and addresses of majority or controlling shareholders.
c. Evidence of U.S. citizenship for the directors.
d. All must be in the articles.

3. Which of the following facts is the best evidence of the existence of a partnership relationship? 
a. Joint or common ownership of property
b. Sharing of gross returns of a business
c. Sharing of net profits of a business
d. Joint participation in a business activity

1. What as a general rule makes a covenant-not-to-compete legal in an employment contract? 


a. The covenant must be reasonable as to time/duration.
b. The covenant must be reasonable as to place/territory.
c. The employer must be able to demonstrate that the covenant was necessary to protect a legitimate business interest of the employer.
d. All of the above.

2. A provision under the UCC which affects merchants differently from nonmerchants is: 
a. The effect of additional terms in an acceptance.
b. The firm offer rule.
c. The written confirmation rule.
d. All of the above.

3. Which of the following is a correct statement? 


a. Incorporators must sign and execute the articles of incorporation of a U.S. corporation.
b. Most states in the U.S. limit the duration of a corporation to fifty years plus a day, which time period can be renewed.
c. A tenancy at will under U.S. law is created by an express contract by which personal property is leased for a specific period of time.
d. A quitclaim deed warrants more than any other deed under U.S. real estate law.