Which of the following is a possible problem faced by potential management innovators?
A. Property rights in management innovations are ill-defined.
B. Implementation of managerial innovations leads to the entry of new firms in the industry.
C. The supply of skilled workers decreases after the implementation of innovations.
D. Companies implementing managerial innovations need to pay higher corporate taxes.
Answer: A
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Which of the following fiscal policy changes would be the most contractionary?
A. A $40 billion increase in taxes B. A $20 billion increase in taxes and a $20 billion cut in government purchases C. A $30 billion increase in taxes and a $10 billion cut in government purchases D. A $10 billion increase in taxes and a $30 billion cut in government purchases
The value of cross elasticity of demand between orange soda and grape soda is:
a. negative. b. positive. c. 0. d. between ?1 and 0. e. less than ?1.
Suppose the federal funds rate rises by 0.5 percent. If the Taylor rule is correct, this might be because output is:
A. 0.5 percentage points below potential output. B. 0.5 percentage points above potential output. C. 1 percentage point below potential output. D. 1 percentage point above potential output.
Expected inflation is
A. the inflation rate minus the actual growth rate. B. the inflation rate that governments require from year to year. C. the inflation rate that consumers and businesses expect will hold for some time in the future. D. the inflation rate that is based on GDP growth.