J.T. Smith's company, Gamemaker, sells gambling equipment to gaming service companies. Since the quality of the equipment is difficult to monitor and gamblers are often the source of machine failure, Smith could cheat on the level of machine quality. However, Smith has a strong quality assurance program. A primary reason for that may be
A. the asymmetric information Smith holds on quality.
B. company reputation.
C. the need for reinforcement.
D. cost containment.
Answer: B
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According to this Application, one explanation for the decline in the U.S. labor force participation rate since 1999 is
A) the increase in immigration to the United States. B) the increase in outsourcing by U.S. companies. C) the decline in the overall population. D) the increasing number of retiring baby boomers.
Refer to Figure 2-3. Sergio Vignetto raises cattle and llamas on his land. A portion of his land is more suitable for raising cattle, and the other portion is better suited for raising llamas
Which of the graphs in Figure 2-3 represent his production possibilities frontier that displays increasing opportunity costs? A) Graph A B) Graph B C) Graph C D) either Graph A or Graph C E) either Graph B or Graph C
Juicy Couture has been successful in selling women's clothing using an unusual strategy
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Which of the following does Gordon believe people consider the single most important macroeconomic issue today?
A) inflation B) poverty C) unemployment D) low productivity