Assume the market in the graph shown with demand D and supply S1 is in equilibrium at a quantity of 5 units. Consumer surplus is:
A. $5.
B. $10.
C. $45.
D. $9.
A. $5.
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Conflicts can arise between divisions because
a. some activities across divisions benefit from coordination b. managers of profit centers care too little about the effects of their decisions on other divisions c. managers are rewarded only for how well their own division is run d. all of the above
Automatic stabilizers combine changes in discretionary fiscal policy with changes in government spending and taxes influenced by the business cycle in order to stabilize the economy
a. True b. False Indicate whether the statement is true or false
Exhibit 15-4 Coffee and tea output (pounds per hour) CountryCoffee Tea Brazil10 5 China 8 8 If specialization were carried out by each country in Exhibit 15-4 on the basis of comparative advantage, then:
A. Brazil would produce neither coffee nor tea. B. China would produce both coffee and tea. C. Brazil would produce tea and China would produce coffee. D. Brazil would produce coffee and China would produce tea.
An example of an exogenous business cycle theory would be the __________ theory.
A. innovation B. inventory C. monetary D. demand shock