For Many Years,Congressman Ricardo Perez Has Called for More Government

question 311

Multiple Choice

For many years,Congressman Ricardo Perez has called for more government regulation of business."After all," the Congressman said recently,"businesspeople are ought to make a profit,not to create jobs or serve their customers.The government must pass more laws to require businesses to take the interests of consumers and workers into account." From these comments,it is clear that Congressman Perez:

• A)Agrees with the ideas of Thomas Malthus.
• B)Does not accept the "invisible hand" idea brought forth by Adam Smith.
• C)Is unaware of the fact that most businesses in the United States are owned by the government.
• D)Does not realize that government regulation is already the main determinant of business decisions in capitalist economies.

Learn to analyze the effects of cost structure on business risk and income variability.

Understand the relationship between fixed expenses, margin of safety, and profit.

Comprehend the concept and calculation of the break-even point.

Differentiate between absorption costing and contribution margin income statement methodologies.