A tax inversion merger ________ legally reduce the combined firms' taxes and these mergers ________.
A) can; are only horizontal mergers
B) cannot; are only vertical mergers
C) can; can be horizontal or vertical mergers
D) cannot; can be horizontal or vertical mergers
C) can; can be horizontal or vertical mergers
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Labor productivity growth depends on i. saving and investment. ii. increases in human capital. iii. technological growth
A) i only B) ii only C) iii only D) Both ii and iii E) i, ii, and iii
An economically backward nation has the best chance of enjoying relatively high rates of economic growth if it
A) turns toward central economic planning. B) adopts advanced technologies. C) raises its minimum wages and government pension programs. D) limits imports as much as possible.
Since it is costly for stockholders to monitor corporate managers, managers may be able to achieve personal perks and pursue other policies that conflict with profit maximization. This is an example of
a. an external benefit. b. economies of scale. c. the principal-agent problem. d. sunk costs.
What is a production function?
a. A relationship between a firm's profits and the technology it uses in its production processes. b. A relationship between the cost and revenue of a firm associated with each possible output level. c. A relationship between any combination of input services and the maximum attainable output from that combination. d. The relationship between a worker's education and his or her ability to be a productive employee.