As macroeconomic conditions improve and consumers' incomes and wealth increase, their demand for many products tends to become ________ price inelastic. As such, the ability of firms to mark up price above cost will ________
A) more; increase
B) more; decrease
C) less; increase
D) less; decrease
A
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Inventory is the
a. net change in inventories of final goods awaiting sale. b. net change in inventories of materials used in the production process. c. included in investment when calculating GDP. d. Both a and b. e. All of the above.
Risks faced by multinational corporations include
A) changes in exchange rates. B) restrictions on ownership. C) repatriation of funds. D) cultural and religious philosophies. E) All of the above
Two common economic problems that may arise from asymmetric information are:
A. moral consequence and adverse selection. B. moral hazard and adverse selection. C. moral hazard and adverse decisions. D. moral consequence and adverse decisions.
The elimination of the federal budget deficit in the 1990s put downward pressure on real interest rates
a. True b. False Indicate whether the statement is true or false