Recall the Applied Perspective concerning Morocco, Coca-Cola, and Multipliers. Coca- Cola's decision to set up a bottling plant in Tangier has
a. created upstream and downstream linkages that accounted for 0.7 percent of Morocco's 1999 GDP
b. had minimal impact on Morocco's economy
c. created a backlash against the Westernization of the Moroccan economy
d. created little new employment since the bottling plant is highly automated
e. resulted in the bankruptcy of local, traditional, soft drink manufacturing firms
A
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The small town of Narberth has two pizza stores. Which of the following statements are CORRECT?
I. The profits of each store depend on the price of the pizza at the other store. II. Both stores would increase their profit if they cooperated in setting their prices. A) I only B) II only C) Both I and II D) Neither I nor II
Which of the following describes the infant industry argument for protectionism?
A) Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets. B) Domestic producers in high-wage countries must be protected from foreign producers in low-wage countries to produce a level playing field. C) An industry must be protected in its early stages of development so that firms can compete with government-subsidized foreign competition. D) Some strategic industries must be protected to ensure adequate supplies of resources needed for national defense in emergencies.
The monetarists would expect a tax cut to have a strong effect on output only if the spending increase was
a. financed by a sale of bonds. b. financed by a cut in government spending. c. financed by an increase in the money stock. d. accompanied by a reduction in the deficit.
If a plant manager is tasked to reduce costs by 10% this is an example of what kind of goal?
a. strategic b. long-term c. tactical d. operational