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Flashcards in True False Deck (35)
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1

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

2

T/F Eastern European nations pioneered the economic philosophy of mercantilism

False

3

T/F with capitalism, the government generally has more control over the individual business owners

False

4

T/F public goods are usually provided by government because business firms could not supply them and make a profit

True

5

T/F Donald trump is a socialist

False

6

T/F exploration is not one of the 5 points of mercantilism

False

7

T/F the full title of Adam Smith's landmark economic treaties is: "an inquiry into the nature and cause of nations"

False

8

T/F according to the classical definition, liberalism does not equal Liberty

False

9

T/F one of the three functions of government according to Adam smith is "to protect its citizens from foreign invasion"

True

10

T/F because it denies the legitimacy of government, radical capitalism is approved by scripture

False

11

T/F a partnership is a business enterprise with two or more persons as the owner

True

12

T/F A limited partner holds all management responsibilities and makes all business decisions

False

13

T/F a corporation is not a separate entity recognized by law

False

14

T/F surety is the act of becoming security for or pledging to undertake another debt

True

15

T/F A business firm with one owner is called a sole proprietorship

True

16

T/F two of the advantages of a partnership are greater management skills and greater possibilities of keeping competent employees

True

17

T/F two disadvantage of a sole proprietorship are unlimited personal financial liability and limited life

True

18

T/F scripture warns agents becoming surety for another's debts

True

19

T/F two of the disadvantages of incorporation are lower taxes and less government regulation

False

20

T/F corporations are the most common form of business original in the U.S

False

21

T/F the S&P 500 is intended to give a broad perspective on business in the U.S.

True

22

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

23

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

24

T/F a group of stocks which are organized to help identify trends in certain industries are called stock indexes

False

25

T/F a group of stocks which are organized to help identify trends in certain industries are called stock indexes

False

26

T/F an IPO is known as an initial private offerings

False

27

T/F the NASDAQ is the largest stock exchange in the US that has no trading floor

True

28

T/F the S&P 500 tracks industrial production along with other type of industries

True

29

T/F "buy high, sell low"

False

30

T/F stock exchanges originated in Ireland and Belgium

False