A given percentage increase in consumer demand can lead to a much larger percentage increase in the demand for plant and equipment necessary to produce the additional output. Economists refer to this as ________
A) derived demand
B) inelastic demand
C) the acceleration effect
D) a straight rebuy
E) the sales cycle
C
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Andrew and Brianna are married and live in Texas, a community-property state. For their birthdays this year Andrew gave cash gifts of $20,000 to each of his two daughters, and Brianna gave $34,000 to her niece. What is the amount of Andrew's taxable gifts?
A. zero only if Andrew and Brianna elect to split gifts. B. $10,000. C. $25,000. D. $2,000. E. None of the choices are correct.
Which of the following are not legitimate constraints on the dividends a firm will pay to shareholders?
A) Dividends must not eat into legal capital. B) Bondholders may have covenants limiting the amount of the dividend. C) Dividends may be constrained by the amount of cash a firm has. D) All are legitimate constraints on the dividends that firms choose to pay to shareholders.
The country of Trevanvia goes through a period of recession, which leaves a large number of people unemployed due to extensive layoffs by companies. The companies use the strategy of job termination to cut down their costs and reduce their output as the people are now more cautious with their spending. In the given scenario, the layoffs exemplify _____.
A. seasonal unemployment B. structural unemployment C. frictional unemployment D. cyclical unemployment
The amount of savings bond interest exempt from tax is phased out completely when an individual is married filing jointly and his or her modified AGI reaches:
A. $147,250. B. $149,300. C. $119,300. D. $94,550.