Related to the Economics in Practice on p. 297: According to the Economics in Practice, in a town with multiple newspapers
A. there is virtually no possibility for firms to produce a similar product and remain in business.
B. there are strong incentives for firms to produce a similar product and focus on the part of the market with the most competition.
C. there are strong incentives for firms to differentiate and focus on the part of the market with less competition.
D. there are virtually no incentives for firms to differentiate and focus on the part of the market with less competition.
Answer: C
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Fluctuating exchange rates can alter a multinational firm's profits and losses. German company Bayer produces products in Germany and sells them in the United States
If the dollar depreciates against the euro, then Bayer's sales in the United States should ________ because it will take ________ U.S. dollars to purchase the German-made products. A) fall; more B) fall; fewer C) rise; more D) rise; fewer
As output is expanded, if marginal cost (MC) is less than average total cost (ATC),
a. ATC must be at its minimum. b. ATC must be at its maximum. c. ATC must be decreasing. d. the firm must be earning economic profit.
The U.S. dollar exchange rate, e, expressed as Japanese yen per U.S. dollar, will depreciate when:
A. the U.S. Federal Reserve tightens monetary policy. B. U.S. consumers decrease their preference for Japanese cars. C. real GDP in Japan increases. D. real GDP in the U.S. increases.
Which of the following statements best describes the 12 Federal Reserve Banks?
A. They are privately owned and privately controlled central banks whose basic goal is to provide an ample and orderly market for U.S. Treasury securities. B. They are privately owned and publicly controlled central banks whose basic goal is to control the money supply and interest rates in promoting the general economic welfare. C. They are privately owned and publicly controlled central banks whose basic goal is to earn profits for their owners. D. They are privately owned and publicly controlled central banks whose basic function is to minimize the risks in commercial banking in order to make it a reasonably profitable industry.