Functional Uform subunits work best in:
A. small, specialized companies.
B. companies that produce many products.
C. industries with rapidly changing technology.
D. large, geographically spread-out companies.
Answer: A
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If households' disposable income decreases, then
A) households' saving will decrease. B) households' saving will increase. C) investment will increase. D) Both B and C are correct.
Off-balance sheet activities involving guarantees of securities and back-up credit lines
A) have no impact on the risk a bank faces. B) greatly reduce the risk a bank faces. C) increase the risk a bank faces. D) slightly reduce the risk a bank faces.
When economists say the quantity demanded of a product has increased, they mean the:
a. demand curve has shifted to the left. b. demand curve has shifted to the right. c. price of the product has fallen, and consequently, consumers are buying more of it. d. price of the product has risen, and consequently, consumers are buying less of it.
Under what conditions might a monopoly be more efficient than a perfectly competitive firm?