Firms generally prefer not to outsource product design and manufacturing because:
a. these activities are common and standardized.
b. these operations are more or less static.
c. these operations involve a low investment.
d. these operations require investment in highly specific assets.
D
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A 10 percent decrease in advertising results in a 5 percent sales decrease. The advertising elasticity of demand is ________
A) -2.0 B) -0.5 C) 0.5 D) 2 E) none of the above
Suppose that in year 1 every adult in the country works 40 hours a week and GDP is $6.7 trillion. In year 2 every adult in the country works 45 hours a week and GDP is $7.5 trillion. Which of the following statements is true?
A) Per-capita GDP is necessarily higher in year 2 than year 1. B) People are "better off" in year 2 than in year 1 because there are more goods and services in year 2 than year 1. C) Government transfer payments were higher in year 2 than in year 1. D) a and b E) none of the above
When applying the marginal principle, you should pick the level at which the activity's marginal benefit is less than its marginal cost.
Answer the following statement true (T) or false (F)
The goal of a gold standard is to
A) return money back to its natural state. B) shift wealth from the middle class to the rich. C) reduce uncertainty by limiting the power of the Federal Reserve to increase the amount of money in circulation. D) conserve on natural resources, such as pulpwood, used to make paper money.