On average each year, about 7 percent of all firms in the United States are new and 1 percent go out of business. According to the text, luck may play a role. Which of the following reasons for failure might be attributable to luck?
A) An individual undertakes a very risky venture so that his product is first to market.
B) An executive fails to undertake an investment that would have yielded great success.
C) An executive focuses on the incorrect objective.
D) An executive undertakes an investment just prior to a major natural catastrophe that destroys the firm's assets.
E) An executive fails to perceive what customers really want.
D
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The Fed operating procedures employed between 1979 and 1982 resulted in ________ swings in the federal funds rate and ________ swings in the M1 growth rate
A) increased; increased B) increased; decreased C) decreased; decreased D) decreased; increased
The leverage ratio for the U.S. banking system in 2007 was about __________ percent
A) two B) five C) ten D) eighteen
The price of crude oil increased to $100 per barrel in early 2008. What would we expect to see happen to the supply of gasoline, which is produced using crude oil?
A) The supply of gasoline will increase. B) The supply of gasoline will decrease. C) The supply of gasoline will stay the same because the government requires gasoline producers to meet statutory minimum production levels. D) The supply of gasoline will stay the same because of the profit motives of gasoline producers.
When the MPC = 0.9, the multiplier is
A) 0.20. B) 1.25. C) 2.50. D) 5.00. E) 10.00.