Suppose that macroeconomic forecasters predict that the economy will be expanding in the near future. How might managers use this information?
What will be an ideal response?
Economic expansion increases consumer incomes, which will increase the demand for normal goods and decrease the demand for inferior goods. Thus a producer of normal goods might be anticipating a future increase in demand and thus considering expansion, while a producer of inferior goods might be preparing for a decrease in demand and considering contraction or a movement into a different good line.
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There was a spike in U.S. legal immigration from 1989 to 1991 due to:
A. An unstable political situation in Mexico B. Increased international travel C. Tremendous economic growth in the U.S. economy D. An amnesty program legalizing formerly illegal immigrants
If a good is scarce, does that imply that there is a shortage of it?
What will be an ideal response?
The lack of investment in developing countries is at least in part attributable to:
A. high levels of foreign aid. B. low levels of domestic savings. C. inappropriate education. D. overpopulation.
Refer to the information provided in Scenario 36.6 below to answer the question(s) that follow.SCENARIO 36.6: Following is information pertaining to four surveys:Survey 1: 50 pre-law students at Vanderbilt University are surveyed for a study to see if taking an LSAT preparation course was effective in improving their chance of being admitted to law school.Survey 2: 600 newly hired Houston-area elementary school teachers are surveyed for a study to determine how much salary they were willing to sacrifice to get a job teaching in a school with a high-quality reputation.Survey 3: 950 people are surveyed 6 months after buying a new car for a study to see how satisfied they are with their purchase.Survey 4: 75 people are surveyed in front of 5 different casinos on the Las Vegas Strip fo a
study to determine the average daily gambling budget of a Las Vegas visitor.Refer to Scenario 36.6. Of the four surveys, which is likely to be the most statistically significant? A. Survey 1 B. Survey 2 C. Survey 3 D. Survey 4