The owner of the local "Fatty Foods" chain of restaurants is thinking about retiring. He has two options: he can hire salaried managers for his stores or franchise them to local entrepreneurs. If the owner believes that there are high costs to monitoring the stores after he retires, what should he do?
a. Let the stores stay company stores
b. Sell them off as franchises
c. Shut down the business completely
d. Never retire
b
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Raising taxes and cutting spending are examples of ________
A) fiscal policy tightening B) fiscal policy expansion C) monetary policy tightening D) monetary policy expansion E) none of the above
In economics, the term "leisure" refers to:
A. nonwork activities that individuals enjoy doing. B. those activities that individuals enjoy doing. C. all nonwork activities. D. the vacation time on receives when working.
In the United States, monopoly regulation began primarily because:
a. there were no natural monopolies in the real world. b. the government wanted to promote other forms of business practices. c. monopolies did not typically follow occupational and safety rules. d. monopolies tended to restrict output and raise prices. e. most economists believed that the majority of industries were following the purely competitive model.
If firms sell less output than expected, planned investment:
A. is greater than actual investment. B. equals zero. C. is less than actual investment. D. equals actual investment.