Duds is a new laundry detergent trying to break into the market. What might be its big problem?
A. Its outsourcing policy
B. Entry costs in terms of getting shelf space in the retail stores
C. Its employment policy
D. The cost it incurs in getting all its employees insured
Answer: B
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Suppose this economy is currently closed. ________ is/are most likely to want open trade, and ________ is/are most likely to oppose opening the economy to trade. 
A. bike manufacturers; bike purchasers B. the government; bike purchasers C. bike manufacturers; the government D. bike purchasers; bike manufacturers
If the Fed wanted to use all three of its major monetary control tools to decrease the money supply, it would:
A. buy bonds, reduce the discount rate, and reduce reserve requirements. B. sell bonds, reduce the discount rate, and reduce reserve requirements. C. sell bonds, increase the discount rate, and increase reserve requirements. D. buy bonds, increase the discount rate, and increase reserve requirements.
Which of the following statements is TRUE about the relationship among external, internal and social costs?
A. Internal costs will always be higher than external costs. B. Internal costs will never equal external costs. C. Social costs will always be higher than external costs. D. Social costs will always be lower than internal costs.
________ refers to an action that an individual with private information takes in order to convince others about his information
A) Sniping B) Signaling C) Hedging D) Speculating