When an economy grows out of a recession, normally the demand for bonds ________ and the supply of bonds ________, everything else held constant
A) increases; increases
B) increases; decreases
C) decreases; decreases
D) decreases; increases
A
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Tom & Jerry are running Hanna Barbera's lemonade stand as two profit centers. Tom makes the lemonade while Jerry sells it. Jerry argues that Tom is transferring the lemonade to him priced too high, which forces him to charge the customers a high price, losing sales. What could be a profitable solution to this transfer-pricing problem?
a. Move the decision making to Hanna Barbera b. Turn Tom's division into a cost center c. Base Tom's reward on the company profits d. Base Jerry's reward on the company profits
The country of Excludania can discourage foreign investment by
a. requiring foreign investors to find a local partner who must be granted controlling interest b. setting different exchange rates for different categories of transactions c. heavily restricting private international borrowing and lending d. All the answers are correct e. None of the answers is correct
Cartels are relatively rare because
a. they are illegal in some countries, including the United States. b. members find it difficult to agree on key decisions. c. members frequently have an incentive to cheat on the cartel. d. All of the above are correct.
Which of the following makes invention and entrepreneurship more likely in today’s economy?
A. Increasing morality of inventors B. Government rules within society C. Positive marginal costs D. Positive marginal revenues