A firm's value added can be measured as the value of its:
A. profits.
B. purchases of inputs from other firms.
C. total sales.
D. total sales, less purchases from other firms.
Answer: D
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Ronald Coase's study, "The Nature of the Firm," argued that firms are formed to take advantage of situations in which hierarchies are more efficient than markets
a. True b. False
The OPEC crisis caused the aggregate demand curve to shift to the left
Indicate whether the statement is true or false
A common argument in favor of restricting international trade in good x is based on the premise that
a. international trade reduces total surplus in countries that export good x. b. international trade reduces total surplus in countries that import good x. c. international trade is desirable only when countries with different domestic supplies of natural resources play by different rules when trading with one another. d. trade restrictions can be useful when one country bargains with its trading partners.
Which of the following statements is false?
A) The Wilshire 5000 is a stock index that consists of the stocks of about 6,500 firms. B) Instead of buying a mutual fund that consists of various stocks picked by a fund manager you can buy a mutual fund that consists of the stocks that make up a particular stock index. C) The term Sypders stands for "Standard & Poors Direct Receipts." D) When an investor buys Spyders they are said to "buy the market."