In profit centers
a. Managers are difficult to evaluate because there is no simple metric of how well they performed
b. Managers typically do not have the information to run their division efficiently
c. Managers' decisions rarely affect other divisions
d. Managers typically are incentivized to run their division efficiently
d
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When a tax is imposed on the suppliers of a good or service, then
A) in general, the producers pay all the tax. B) in general, the consumers pay all the tax. C) the consumers pay a larger part of the tax as the elasticity of demand for the product becomes smaller. D) the consumers pay a larger part of the tax as the elasticity of demand for the product becomes larger.
When investigating the term structure of interest rates, the bonds compared are
A) identical except for their maturity dates. B) identical in maturity, but differ in terms of liquidity and risk. C) identical in terms of risk, but differ in terms of tax characteristics. D) identical except for their liquidity.
The change in the savings rate during the 1990s is NOT consistent with
A) Friedman's permanent-income hypothesis. B) Modigliani's life cycle hypothesis. C) the boom in the stock market. D) All of the above.
A difference between a perfectly competitive market equilibrium and a perfect price discrimination equilibrium is that in a competitive market ________, whereas in perfect price discrimination ________
A) all units are sold where P = MC; only the last unit sold is at P = MC B) deadweight loss varies depending on the shape of the MC curve; deadweight loss increases C) consumers are better off; producers lose some sales due to high prices. D) All of the above.