When a firm divests itself of an unrelated business to focus on it core competency, the firm is
A) using economies of scope to cut costs.
B) downsizing.
C) outsourcing.
D) market sharing.
C
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Why is economic development a contentious subject? Use one of the controversies mentioned in the chapter to illustrate why people may not agree on the answers
What will be an ideal response?
Which oligopoly model was developed to explain price wars in an industry?
a. natural oligopolies b. cartels c. price leadership by a dominant firm d. game theory e. cost-plus theory
If the Fed decides to engage in an open market operation to increase the money supply, what will it do?
a. Sell Treasury bonds, bills, or notes on the bond market. b. Buy Treasury bonds, bills, or notes on the bond market. c. Increase the required reserve ratio. d. Increase the fed funds rate.
The required stock return an investor seeks can best be represented by which of the following?
A. Risk-free Return + Risk Premium B. Risk Premium - Risk-free Return C. Risk-free Return × Risk Premium D. (Risk-free Return + Risk Premium)/(1 + i)