The government imposes a tax on an industry that produces goods creating a negative externality. Yet the industry produces more than the optimum quantity of output. This means
A) the tax is more than the external cost associated with the product.
B) the tax is less than the external cost associated with the product.
C) the company should advertise the product more.
D) the company should increase the production of the product.
B
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Expected real interest rates are the
A) interest rates quoted in the market plus the expected inflation rate. B) interest rates quoted in the market. C) expectations of future interest rates. D) interest rates quoted in the market minus the expected inflation rate.
An autonomous easing of monetary policy results in a ________ level of equilibrium output, shifting the aggregate demand curve to the ________
A) higher; right B) lower; right C) higher; left D) lower; left
One should be wary of consultants peddling best practices or secrets to success because
a. They have different incentives than you do b. Such best practices are public knowledge and easily duplicated c. These best practices can at best only provide temporary profitability d. All of the above
Which of the following is FALSE about firms organized along functional lines?
a. Workers develop functional expertise b. Workers find it difficult to share information within their division c. They foster the exploitation of economies of scale d. None of the above