Explain, with an example, the type of short-term decisions retailers often have to make.
What will be an ideal response?
Short-term decisions are made based on circumstances present today or in the near future. An example would be labor planning for a retailer. The retailer would need to decide how to staff his or her store for the week based on past sales and anticipated sales for the week. Decisions that are NOT short-term decisions are decisions such as where to locate a store, what type of product line to produce, and so forth.
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Net domestic product is usually preferred to GDP by economists because net national product
A. includes depreciation. B. excludes depreciation. C. includes indirect business taxes. D. excludes indirect business taxes.
The owner of a small business applies for a bank loan and tells the loan officer that the funds will be used to expand inventory for the upcoming holiday season. The small business finds itself in need of additional funds to meet the monthly rent for the next quarter and the owner uses the loan proceeds to pay the rent. This is an example of:
A. default risk. B. a lack of diversification for the bank. C. liquidity risk. D. information asymmetry.
According to the diagram in the figure above, an allocatively efficient use of resources requires that production and consumption of gasoline be
A) 1 million gallons of gasoline per month. B) 2 million gallons of gasoline per month. C) 3 million gallons of gasoline per month. D) 4 million gallons of gasoline per month.
Which of the following is not included in Nation A's financial account?
a. Foreign deposits of funds in savings accounts in Nation A. b. Purchases and sales of legal and accounting creations. c. Foreign purchases of Nation A's Treasury bills. d. All the above.