The manager of Steel Works learns of a new technological interdependency between the first stage and the intermediate stage of production. If Steel Works currently contracts with another firm for the first stage of production, which of the following is true?
A) The manager has more of an incentive to integrate backward.
B) The manager has more of an incentive to integrate forward.
C) The manager has less of an incentive to integrate backward.
D) The manager has less of an incentive to integrate forward.
A) The manager has more of an incentive to integrate backward.
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Which of the following is an employer mandate in the new the federal government's new national health care program?
A) Under the new program, the federal government will coordinate the establishment of health insurance exchanges. B) A tax rate of 3.8 percent will be assessed on nearly all earnings above $200,000 per year forindividuals and above $250,000 per year for married couples. C) Firms with at least 50 employees must either provide health insurance or pay fines when uninsured employees receive tax subsidies to purchase insurance. D) Nearly all U.S. residents must either purchase health insurance coverage or pay a fine of up to $750 per year for an individual (up to $2,250 per year for a family).
To produce financial stability, the Federal Reserve would want to
A. sell bonds during a recession and buy bonds during an economic boom. B. raise the money supply and cut interest rates during a recession to stimulate spending. C. increase the money supply during an economic boom and reduce the money supply during a recession. D. raise the interest rate during a recession to prevent excessive borrowing and increase income for struggling banks.
The satisfaction or happiness one gets from consuming a good or service is called
A. profits. B. utility. C. income. D. price.
Economist B thinks that it is important to identify the condition(s) under which the case for government is strongest. With respect to the provision of nonexcludable public goods, she says
A) people must pay taxes to pay for the nonexcludable public good. B) firms must pay taxes to pay for the nonexcludable public good. C) people must actually want the nonexcludable public good that the government provides. D) people must express their desire for the nonexcludable public good by voting for it. E) none of the above