Many argue that industry prices decrease as a result of advertising. Which of the following perspectives supports this view?
A. Advertising equals market power.
B. Advertising equals brand loyalty.
C. Advertising equals information.
D. Advertising isolates markets.
E. Advertising produces differentiation.
Answer: C
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Alton is 60-years-old and plans to fully retire in ten years. He has contributed to a traditional IRA for several years, and it now has a $150,000 balance. All of his contributions were deductible. Alton is considering converting the traditional IRA to a Roth IRA. He will pay any taxes due from a money market account he holds outside the IRA. The money market account earns a 5% after-tax rate of return. The IRA earns an 8% before-tax rate of return. Assume Alton's marginal tax rate is currently, and will remain at, 20%. He plans to withdraw the full balance from the IRA in ten years to buy a new house. Calculate the after-tax accumulation assuming he (1) retains the existing traditional IRA and (2) converts to the Roth IRA.
What will be an ideal response?
Given the prognosis for Aetna’s future, discuss what you think would have happened to Aetna assuming they implemented their strategy as per plan.
What will be an ideal response?
The principle of risk-return trade-off means that
A) higher risk investments must earn higher returns. B) an investor who takes more risk will earn a higher return. C) an investor who bought stock in a small corporation five years ago has more money than an investor who bought U.S. Treasury bonds five years ago. D) a rational investor will only take on higher risk if he expects a higher return.
The maximum number of hours that an employee can work in a workweek under the Fair Labor Standards Act is:
a. not limited for employees 16 years of age and over b. limited to forty hours per week for employees under 16 years of age while school is in session c. not limited for employees 16 years and over, but it must equal no more than 40 hours a week when averaged across any two work weeks d. limited to 50 hours per week for employees who are non-exempt, but there is no limit for exempt managers and professionals. e. none of the above