Explain the key issues presented by both sides of the Staples/Office Depot case in 1997.
What will be an ideal response?
Staples and Office Depot proposed a merger on the basis that it would allow the companies to save money in production costs and pass the savings along to consumers. The FTC found that the price of office products was significantly higher in regions that had only one of the stores, and so they determined that the anticompetitive effects of the merger outweighed the potential cost savings, and blocked the merger.
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Of the following exchange rate arrangements, in which does the exchange rate fluctuate around a fixed central target rate while allowing a moderate amount of fluctuation?
A) Independently floating B) Currency Board C) Horizontal Bands D) Fixed peg
Which one of the following is an example of the circular flow model and shows the interdependence of households and firms?
a. Households demand their resources from the firms in the factor markets and, in turn, supply in the product market the goods and services produced by firms. b. The firms go to the resource market to supply resources that households demand and, in turn, provide households with the goods and services produced for the product markets. c. Households supply their resources to the firms in the factor markets and, in turn, demand in the product market the goods and services produced by the firms. d. The firms in the factor markets pay to households in the form of wages, interest, rent and profit?for resources demanded. e. The circuit is completed when the payments flow from households, through the product markets, and to the firms for the goods and services they demand.
Capital gains are profits that you earn on the sale of your
A. labor. B. money. C. financial asset. D. economics textbook.
The Fed's diversity reflects
A. The targeting of interest rates as the only goal to be achieved by monetary policy. B. Fixed rules that are set for monetary growth rates. C. Changes in the targets the Fed sets for adjusting monetary policy. D. Guidance from Congress.