When a transfer price is set lower
a. the buying division will want to sell less to the selling division
b. the buying division will want to sell more to the selling division
c. the selling division will want to sell less to the buying division
d. the selling division will want to sell more to the buying division
c
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The production possibilities frontier is the boundary between the
A) rational and irrational choices facing a society. B) wanted and unwanted combinations of goods and services. C) goods and services that the economy can produce. D) affordable and unaffordable combinations of production. E) attainable and unattainable combinations of goods and services.
For a given return on assets, the lower is bank capital
A) the lower is the return for the owners of the bank. B) the higher is the return for the owners of the bank. C) the lower is the credit risk for the owners of the bank. D) the lower the possibility of bank failure.
A price taker is
A) a firm that accepts different prices from different customers. B) a consumer who accepts different prices from different firms. C) a perfectly competitive firm. D) a firm that cannot influence the market price. E) both C and D
Which of the following would tend to increase the natural unemployment rate?
a. The creation of national unemployment offices to increase the information about job openings b. Recessionary downturns in the economy that result in massive layoffs of auto workers c. Sociological changes that encourage people to seek employment d. The creation of government subsidies for workers who relocate into areas where new jobs can be found e. Less government money made available as unemployment compensation