Greg and Todd form a partnership and start a business in which each has a 50 per cent share of the profit. After a year, the firm goes bankrupt and has debts of £20,000. Greg has no money, but Todd has £25,000 in the bank. Todd must pay _______ of debt.

£0 because in a partnership each partner must pay the same
£20,000
£25,000
£10,000

Martha and Wendy start a cookie shop and the business is organized as a corporation. Because of poor planning the business goes bankrupt and the corporation's debt is £30,000. Martha has no wealth, but Wendy has £50,000 in savings. Martha has to pay _______ of the debt and Wendy has to pay _______ of the debt.

£0; £30,000
£0; £15,000
£15,000; £15,000
£0; £0

In an oligopoly with two firms, one firm's share of the market is 70 per cent. The five-firm concentration ratio is _______.

70
0
100
30

If 25 firms share the sales of the market equally, the five-firm concentration ratio is _______ per cent.

25
5
100
20

Wanda owns a desktop publishing company. Wanda can purchase a computer for £5,000 or rent it for £600 a year. Wanda buys the computer and pays an implicit rental rate of _____________________.

£5,600 a year
£5,000 a year
£600 a year
zero

Flora's Flower Shop bought a new van for £16,000. Today, the market price of this van is £7,000. Over the years, Flora's accountant has depreciated the van by £10,000. The economic depreciation of the van is ______________.

£9,000
£16,000
£7,000
£10,000

A contestable market has a ________.

low five-firm concentration ratio
five-firm concentration ratio equal to 100
five-firm concentration ratio equal to 0
high five-firm concentration ratio

The table shows four methods for producing 25 zobs a day. Of the four methods, ____________ technologically inefficient.

method B is
method D is
methods A and C are
methods A and B are

The table shows four methods for producing 25 zobs a day. If the cost of a worker is £10 a day and the cost of capital is £10 a day, the economically efficient method of producing zobs is ___________.

B
C
B, C, or D
A

The table shows four methods for producing 25 zobs a day. If the cost of a worker is £5 a day and the cost of capital is £10 a day, the economically efficient method of producing zobs is ___________.

B
D
A
A or C