Which model tends to focus on the internal assets of a company?
A) five-forces model
B) resource-based model
C) supply and demand model
D) profit-maximization model
B
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Suppose the typical consumer only purchases food and clothing, and her utility can be expressed as U = F ? C. Currently, food costs $5 per unit and clothing costs $2 per unit. Her income is $70
If the price of food increases to $6, compare the resulting Laspeyres price index with a true cost of living index.
When an economy is experiencing a negative output gap, it means that the:
A. actual output is less than their potential output. B. actual output is more than their potential output. C. price level is rising. D. price level is falling.
Fiscal policy is:
A. the decisions that affect the available money supply in the economy. B. government decisions about the level of the interest rate in the economy. C. government decisions about the level of taxation and public spending. D. congressional budget office decisions.
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C