Moderate

The foremost advantage of a corporation is its_____________?

Correct answer: A. ability to accumulate vast amounts of capital in a short time

  • A. ability to accumulate vast amounts of capital in a short time
  • B. capacity for protracted periods of employment
  • C. ability to profit from the labor of its employees
  • D. necessity to exhibit the latest technology

Explanation

A corporation can pool the savings of many investors and raise very large amounts of capital, often more quickly and on a larger scale than a sole proprietorship or partnership. Its other features are not its foremost economic advantage.

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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.

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