Increases in the general price level are primarily a macroeconomic issue
a. True
b. False
A
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Regarding operating risk exposure, which of the following statements is NOT true?
a. they are more difficult to hedge than transaction risk exposures b. they are easier to forecast than translation risk exposures c. they necessitate more managerial attention and extensive analysis d. only a and b e. all of the above are true
In the graph showing aggregate demand and aggregate supply after a negative supply shock, we can see that high energy prices in the late 1970s caused ______.
a. an increase in price levels and a decrease in RGDP
b. a decrease in price levels and an increase in RGDP
c. an increase in both price levels and RGDP
d. a decrease in both price levels and RGDP
According to a study by economists Ian Ayres and Steven Levitt, the division of the total benefit of the Lojack to its owners and all other car owners is:
A. 100 percent to the car owner with a Lojack, 0 percent to other car owners. B. 10 percent to the car owner with a Lojack, 90 percent to other car owners. C. 75 percent to the car owner with a Lojack, 25 percent to other car owners. D. 50 percent to the car owner with a Lojack, 50 percent to other car owners.
Related to the Economics in Practice on page 26: How did the introduction of the microwave oven in 1960 affect the market for frozen food?
A. It made frozen foods more appealing by increasing the variety of meals that could be frozen and reheated. B. It encouraged people to leave the work force by making cooking easier and less time-consuming. C. It reduced the opportunity cost of eating frozen food by decreasing the amount of time required to prepare frozen meals. D. It increased the financial cost of alternative methods of food preparation, such as conventional ovens.