The effect of a recession on a company like General Motors Corporation is such that
A) sales decline more sharply for General Motors as compared to firms that do not produce durable goods.
B) profits fall less sharply as compared to firms that do not produce durable goods.
C) the decline in sales is more short-lived as compared to firms that do not produce durable goods.
D) there is no difference in the impact of the recession on its profits as compared to firms that do not produce durable goods.
Answer: A
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The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture. The market equilibrium with no government intervention is raising ________
A) 0 goats B) 40 goats C) 50 goats D) 55 goats
Equilibrium takes place where:
A. supply and demand intersect. B. supply is highest. C. demand is highest. D. prices are maximized.
According to the classical economists, which of the following would make prolonged unemployment impossible?
a. Flexible prices, wages, and interest rates. b. Activist government policies. c. Stable investment demand. d. A steadily growing money supply.
According to the textbook, The Wonderful Wizard of Oz is alleged to be a story about
A) the California gold strikes of 1849. B) the end of the gold standard in 1934. C) the presidential election of 1896. D) the financial panic of 1907.