If Mario's Pizza, a large frozen pizza distributor, builds a tomato sauce plant near Red Tomatoes, a large tomato farm, to reduce the costs of transporting fresh tomatoes, ________ potentially faces a hold-up problem as the firm invested in a ________.
A) Mario's Pizza; transaction-specific asset
B) Red Tomatoes; negotiation asset
C) Red Tomatoes; transaction-specific asset
D) Mario's Pizza; negotiation asset
A) Mario's Pizza; transaction-specific asset
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The "Big Mac Theory of Exchange Rates" tests the accuracy of the purchasing power parity theory. In July 2015, the Economist reported that the average price of a Big Mac in the U.S. was $4.79
In Sweden, the average price of a Big Mac at that time was 43.7 kronor. What is the "implied exchange rate" between Swedish kronor and U.S. dollars? A) 0.11 kronor per dollar B) 1.90 kronor per dollar C) 9.12 kronor per dollar D) 46.2 kronor per dollar
If the real rate of return is 3 percent, and the inflation rate is 4 percent, then the nominal interest rate must be:
A. ?1 percent. B. 1 percent. C. 7 percent. D. ?7 percent.
As of 2015, for income distribution in the United States, the minimum family earnings in the top quintile were nearly ________ times the maximum family earnings in the bottom quintile.
A. 10 B. 3 C. 5 D. 7
The ability to share work and share risk is an advantage for
A) sole proprietorships and partnerships. B) sole proprietorships. C) sole proprietorships and corporations D) partnerships.