Q21. A nation\'s raw materials and sources of energy are considered part of its capital resources. a. true b. false Q22. Comparative advantage cannot be applied to activities of individuals. a. true b. false Q23. Which of the following is true of scarcity? a. it applies to raw materials; manufactured goods are not scarce b. it affects all countries except the United States and Western Europe c. it is a basic problem of economics that affects all nations d. it is a basic problem of economics that affects all nations Q24. The ability to produce a good or service at a lower opportunity cost than other producers face is known as comparative advantage. a. true b. false Q25. Under the U.S. market system, land and capital goods are owned mainly by a. the federal government b. individuals and firms c. local governments d. state governments Q26. A major disadvantage of a corporation is a. its weakness at raising funds b. its inability to limit the financial liability of the owners c. the double taxation of its profits d. its lack of continuity in the event of a stockholder\'s death Q27. The major advantage of the sole proprietorship is its a. ability to raise funds b. lack of distinction between business and owner c. provision of continuity in the business in case of death d. flexible management Solution Q21. A nation\'s raw materials and sources of energy are considered part of its capital resources. \"True\". Capital resources are goods produced and used to make other goods and services. Raw materials and sources of energy are used in producing goods and services hence are capital resources. Q22. Comparative advantage cannot be applied to activities of individuals. \"False\". Comparative advantage arises when one does an activity with lesser reources and with lesser opportunity costs that others, hence it can be applied. Q23. Scarcity \"is a basic problem of economics that affects all nations\". All economic problems of all nations arises out of the fact that resources are scarce in nature. Q24. The ability to produce a good or service at a lower opportunity cost than other producers face is known as comparative advantage. \"True\". Q25. Under the U.S. market system, land and capital goods are owned mainly by \" individuals and firms\" Because US is a more of a Capitalist economy. Q26. A major disadvantage of a corporation is \"the double taxation of its profits\". Because it is very much suitable in raising funds, limiting owners liability and continuation even at death of owner. Q27. The major advantage of the sole proprietorship is its \"flexible management\". Because a sole proprietorship firm is generally small in size and its management lies in control of owner..

1. Q21. A nation's raw materials and sources of energy are considered part of its capital resources.
a. true
b. false
Q22. Comparative advantage cannot be applied to activities of individuals.
a. true
b. false
Q23. Which of the following is true of scarcity?
a. it applies to raw materials; manufactured goods are not scarce
b. it affects all countries except the United States and Western Europe
c. it is a basic problem of economics that affects all nations
d. it is a basic problem of economics that affects all nations
Q24. The ability to produce a good or service at a lower opportunity cost than other producers
face is known as comparative advantage.
a. true
b. false
Q25. Under the U.S. market system, land and capital goods are owned mainly by
a. the federal government
b. individuals and firms
c. local governments
d. state governments
Q26. A major disadvantage of a corporation is
a. its weakness at raising funds
b. its inability to limit the financial liability of the owners
c. the double taxation of its profits
d. its lack of continuity in the event of a stockholder's death
Q27. The major advantage of the sole proprietorship is its
a. ability to raise funds
b. lack of distinction between business and owner
c. provision of continuity in the business in case of death

2. d. flexible management
Solution
Q21. A nation's raw materials and sources of energy are considered part of its capital resources.
"True". Capital resources are goods produced and used to make other goods and services. Raw
materials and sources of energy are used in producing goods and services hence are capital
resources.
Q22. Comparative advantage cannot be applied to activities of individuals.
"False". Comparative advantage arises when one does an activity with lesser reources and with
lesser opportunity costs that others, hence it can be applied.
Q23. Scarcity "is a basic problem of economics that affects all nations". All economic problems
of all nations arises out of the fact that resources are scarce in nature.
Q24. The ability to produce a good or service at a lower opportunity cost than other producers
face is known as comparative advantage.
"True".
Q25. Under the U.S. market system, land and capital goods are owned mainly by
" individuals and firms" Because US is a more of a Capitalist economy.
Q26. A major disadvantage of a corporation is
"the double taxation of its profits". Because it is very much suitable in raising funds, limiting
owners liability and continuation even at death of owner.
Q27. The major advantage of the sole proprietorship is its
"flexible management". Because a sole proprietorship firm is generally small in size and its
management lies in control of owner.