Answer the following statements true (T) or false (F)
1. Prior to 2006, the most severe trough in a U.S. business cycle since the Great Depression occurred in 1981–1982.
2. Psychological forces usually tend to moderate cyclical movements of the economy.
3. A recession is defined as a period in which real GDP is negative for two consecutive quarters.
4. Interest rates usually rise during the contraction phase of the business cycle.
5. The level of business activity at any time is affected by the trend, seasonal variations, random fluctuations, and cyclical fluctuations.
1. TRUE
2. FALSE
3. FALSE
4. FALSE
5. TRUE
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Bob is given the right to make all the important decisions in an organization. This is an example of
A. centralized decision making. B. decentralized decision making. C. bundling. D. a nonstandard practice within a hierarchy.
If the cross-price elasticity is negative, we can conclude that the two goods are ______ because the price of one good and the demand for the other move in opposite direction.
a. surrogates b. substitutes c. complements d. contradictory
Formation of trade blocs can be considered beneficial because it
A. diverts world trade from low-cost producers to high-cost producers by encouraging too much trade within blocs. B. causes international friction when certain countries are let in the bloc and others are left out. C. encourages purchases from higher-cost producers. D. encourages increased total trade by each member country.
When there are economies of scale, larger and fewer firms bring cost efficiencies even as they reduce price competition.
Answer the following statement true (T) or false (F)