If a company has two profit centers where one supplies the other with necessary ingredients to a company product, and if the relationship between two centers is clearly inimical to company success, then:
A. the company should probably reorganize.
B. it is time to use the market-based transfer price system.
C. it is time to implement a marginal cost based transfer system.
D. the company should change its management control system.
Answer: A
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The point price elasticity of demand is -1/2. The price of the product increases from $1.00 to $1.10. Given the information in Scenario 4.3, the quantity demanded will decrease by approximately:
A) 5 units. B) 5 percent. C) 10 units. D) 10 percent. E) none of the above
The aggregate demand curve:
a. would be little affected by a technological advancement. b. shifts to the right when spending decreases. c. shifts to the left when there is a decrease in taxes. d. cannot move independently of the aggregate supply curve. e. shifts to the right when there is an expectation that future income will fall.
Which of the following is not correct?
a. If you buy a bond from a corporation, you can sell the bond to someone else before it matures. b. Term refers to the scheduling of periodic interest rate payments on a bond. c. A bond is an IOU. d. There are millions of different bonds in the U.S. economy.
Which of the following changes shifts the SRAS curve up?
A. A decrease in the labor force B. An increase in government purchases C. A decrease in the money supply D. An increase in firms' costs