In the example of coordination problems between Google and Motorola Mobility, one method to solve the problems was
A) to undertake a merger or acquisition.
B) form a joint venture.
C) for one firm to subcontract with the other.
D) All of the above.
D
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Demand for the Brazilian real is
A) determined by how well the real maintains its value. B) a function of the Brazilian banking system. C) derived from the supply of U.S. dollars. D) derived from the demand for Brazilian goods.
In the Wabash case (1886), the Supreme Court held that:
a. states cannot enact laws that interfere with interstate commerce. b. states could restrict price-discrimination based on person, but not price-discrimination based on place. c. states could regulate railroad rates on long-hauls, but not rates on short-hauls. d. held that railroad practices could not be regulated by any federal or state governing body.
Suppose a firm wants to build a new factory that would add pollution to an already polluted area. Under an offset program, the firm must:
a. install scrubbers and other government-mandated equipment. b. purchase pollution permits from the government. c. reduce or eliminate an old pollution source in the area. d. pay a tax which depends on the amount of pollution created.
The government has just passed a law requiring that all residents earn the same annual income regardless of work effort. This law is likely to
a. increase efficiency and increase equality. b. increase efficiency but decrease equality. c. decrease efficiency but increase equality. d. decrease efficiency and decrease equality.