A merger between two firms occurs when
a. two firms agree to work temporarily on a single project, which is why we constantly read about mergers occurring and splitting up
b. one firm splits into two or more firms, such as General Motors splitting into divisions of Buick, Pontiac, and so on
c. each of the two firms agrees not to sell in each other's markets
d. the two firms become one firm, as in the newspaper industry when the Chicago Sun and the Chicago Times became the Chicago Sun-Times
e. one firm quits the industry and another takes over its market share
D
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According to the quantity theory of money, in the long run
A) an increase in the quantity of money creates an increase the price level but no increase in real GDP. B) the quantity of money in the economy will always be just the right amount. C) an increase in the quantity of money creates an increase in the price level and in real GDP. D) None of the above answers are correct.
Which of the following has the highest present value?
A) $1,000 received in 3 years if the current interest rate is 4% B) $1,500 received in 5 years if the current interest rate is 6% C) $2,000 received in 6 years if the current interest rate is 11% D) $3,000 received in 10 years if the current interest rate is 12%
Under laissez faire, the allocation of resources among different products depends on
a. consumer preferences. b. production costs. c. Both a and b are correct. d. Neither a nor b is correct.
The demand for a good is unit elastic with respect to price if the price elasticity of demand is:
A. equal to one. B. greater than one. C. greater than negative one. D. less than one.