When a person is making a decision at the margin he or she is comparing the total benefits from that activity to the total costs of the proposed action.
Indicate whether the statement is true or false.
Ans: False.
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All of the following can cause conflict between divisions EXCEPT
a. Coordination between divisions does not benefit all divisions equally b. managers of profit centers care too little about the effects of their decisions on other divisions c. corporate executives reward managers based on firm profitability instead of divisional profitability d. corporate executives cannot tell when one divisional manager's decisions are appropriate or not
One of the reasons primary credit exists is to:
A. provide banks with a low interest source for long-term capital. B. provide banks with an available source for unsecured lending. C. bail out banks which are in financial trouble. D. provide additional reserves when the open market staff's forecasts are off.
Which of the following is true of The Invisible Hand Theorem?
A. There can be no taxes of any kind. B. The slope of the production possibilities curve is not affected by movements along the production contract curve. C. Monopoly pricing will not distort efficiency as long as consumers are willing to pay the prices of the monopolists. D. Any position on the consumer contract curve can be efficient.
The process by which new products and technologies drive out existing products and techniques is known as:
A. Consumer sovereignty. B. Creative destruction. C. Capital accumulation. D. Destructive creation.