Operators of Private Dog Parks in Your City Decide to Eliminate

question 197

Multiple Choice

Operators of private dog parks in your city decide to eliminate their fees and allow dog owners to exercise their dogs in the parks at no charge. This statement means that the incentive to exercise dogs at the dog park ________.
The operators' decision is a ________.

• A)remains the same;macroeconomic decision
• B)changes;microeconomic decision
• C)remains the same;microeconomic decision
• D)changes;macroeconomic decision
• E)changes;decision in the self-interest but not in the social interest

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Definitions:

De Jure Corporation

A corporation that is fully in compliance with all state laws and therefore officially recognized as a legal entity.

De Facto Corporation

A company that operates as if it were legally incorporated, despite not having completed the necessary incorporation processes, and may thus be treated as a corporation in many contexts.

Shareholders

Owners of shares in a company, giving them rights to vote on company matters and receive dividends.

S Corporation

A special designation that allows small businesses to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes.