A possible advantage of a horizontal merger for the economy is that
A) the government stands to collect more corporate income tax revenue.
B) the merged firm might reap economies of scale which could translate into lower prices.
C) the merging firms could avoid losses.
D) the degree of competition in the industry will be intensified.
B
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Consumption spending includes spending on durable goods, nondurable goods, and services
Indicate whether the statement is true or false
Mercantilists perceived trade as a zero sum game
Indicate whether the statement is true or false
If the expected path of one-year interest rates over the next five years is 4 percent, 5 percent, 7 percent, 8 percent, and 6 percent, then the expectations theory predicts that today's interest rate on the five-year bond is
A) 4 percent. B) 5 percent. C) 6 percent. D) 7 percent.
An example of moral hazard is
a. A taxi driver paid per mile taking a longer route than necessary b. a piece-rate garment worker shirking more than a per jour worker c. an hourly salesman working harder than a commission salesman d. an author on contract going to as many book signings as one with a percentage royalty rate