Tax cuts would have the same directional effect on the dynamic aggregate demand curve as:
A. decreases in government purchases.
B. temporary tax increases.
C. the Federal Reserve selling U.S. treasury securities.
D. the Federal Reserve buying U.S. treasury securities.
Answer: D
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The law of diminishing marginal utility suggests that a demand curve: a. shows a direct relationship between price and quantity demanded. b. has a slope equal to zero
c. has a positive slope. d. has a negative slope.
Which of the following is considered to be a cost of information?
a. The price of the commodity for which information is collected. b. The time spent to collect the information. c. The difference in price charged by different sellers for the same commodity. d. The difference in price paid by different buyers for the same commodity.
When Apple put together a set of digital apps that ran within its own operating system, it was practicing
A. bundling. B. compacting. C. versioning. D. tie-in sales.
In the 1980s the CEO of Coca Cola corporation found out that its core business was making roughly 15% rate of return on investor capital
However, he also discovered that some of the newly acquired subsidiaries were not making anywhere near that amount. He decided to ask each of these companies to come up with a plan to push the rate of return closer to the 15% mark or he warned that these companies might be sold. Why would the CEO sell off companies or operations that are still profitable?