Vertical integration can
A) lower transaction costs due to lower costs of writing and enforcing contracts.
B) increase management costs and complexity.
C) reduce problems between owners and managers.
D) All of the above.
D
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If the demand curve is perfectly elastic, and if the price of the good is increased by 10 percent by the seller, then revenue from the sale of the good would
A. remain constant. B. fall to zero. C. increase by 10 percent. D. decrease by 10 percent.
A resource that is a common property is
A) oil on land owned by a drilling and refining company. B) natural gas on land owned by an energy producer. C) timber on land owned by a lumber company. D) water in a publicly owned river.
Currently, total government expenditures in the United States have totaled about:
a. one-tenth of GDP. b. one-fifth of GDP. c. 40 percent of GDP. d. one-half of GDP.
A country will roughly double its GDP in five years if its annual growth rate is: a. 5 percent
b. 7 percent. c. 12 percent. d. 14 percent.