A Partner in a _____ Partnership Is One Engaged in the Business

question 16

Multiple Choice

A partner in a _____ partnership is one engaged in the business of buying and selling commodities, has the implied authority to borrow money in the usual course of business and to pledge the credit of the firm.

• A) trading
• B) superior
• C) traditional
• D) business
• E) nontrading

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Definitions:

Corrective Tax

A tax designed to encourage private decision makers to take into account the social costs that arise from a negative externality.

Allocative Efficiency

A state where resources are allocated in a way that maximizes the net benefit to society, with products being produced at a quantity where the price equals marginal cost.

Consumer Surplus

The contrast between the total payment consumers are willing and financially able to make for a good or service and the amount they truly pay.

Producer Surplus

The discrepancy between the price producers agree to sell a good for and the price they actually end up receiving.