Which of the following is not a reason why firms merge?
a. to exercise greater market control
b. to increase control over suppliers
c. to expand their asset holdings
d. to diversify their asset holdings
e. to multiply the brands they offer
E
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Heavy advertising expenditures usually indicate
A. oligopoly. B. pure competition or monopolistic competition. C. oligopoly or monopoly. D. differentiated pure competition or monopoly.
Foreign direct investment is
A. the diversification of purchasing shares in many companies in one country so that risk is kept to a minimum. B. the purchase of less than 10 percent of the shares of ownership in a company in another country. C. the purchase of more than 10 percent of the shares of ownership in a company in another country. D. the diversification of purchasing shares in one company in many countries so that risk is kept to a minimum.
Refer to the consumption schedule above. At income level 1, the amount of saving is:
A. Positive
B. Negative
C. Zero
D. Not measurable
Until recently, George lived in a home that was newly constructed in 2005 . In 2005, he paid $200,000 for the brand new house. He sold the house in 2006 for $225,000 . Which of the following statements is correct regarding the sale of the house?
a. The 2006 sale increased 2006 GDP by $225,000 and had no effect on 2005 GDP. b. The 2006 sale increased 2006 GDP by $25,000 and had no effect on 2005 GDP. c. The 2006 sale increased 2006 GDP by $225,000; furthermore, the 2006 sale caused 2005 GDP to be revised upward by $25,000. d. The 2006 sale affected neither 2005 GDP nor 2006 GDP.