MACROSOFT's top management is contemplating the development and marketing of three new software products (a word processor, a spreadsheet application, and a web browser). However, it needs to decide whether to launch them separately or as a package. The CEO proposes to delegate the decision to a team formed with representatives from each department. Why does this proposal make economic sense?
A. Their differences are likely to prove to be advantageous to the management.
B. They are likely to make a more informed decision.
C. Ultimately, they are the ones who have to implement whatever decision is made, so one might as well ask their opinion.
D. If the project fails, the management will have someone to blame.
Answer: B
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Microeconomic topics do not usually include: a. the impact of large government budget deficits on private investment spending. b. the determinants of the supply of wheat by farmers
c. the determinants of the demand for DVD players by consumers. d. the impact of a change in the price of leather used to manufacture shoes.
If the market for wheat is in equilibrium, the quantity of wheat demanded will equal the quantity of wheat supplied
a. True b. False Indicate whether the statement is true or false
Elsa and Moshe have different ideas about how their country should invest its tax revenues. Elsa feels that some of it should be used to fund an ambitious space science program. Moshe feels the money would be better spent on improvements to roads, bridges, and airports. It is likely that Elsa is more interested in ______ than Moshe.
a. stimulating innovation b. enhancing natural resources c. boosting population growth d. reducing poverty
Refer to the diagram. The initial aggregate demand curve is AD 1 and the initial aggregate supply curve is AS 1 . If government offsets the decline in real output resulting from short-run cost-push inflation by increasing aggregate demand from AD 1 to AD 2
A. real output will rise above Q f .
B. the price level will rise from P 1 to P 2 .
C. it is possible that aggregate supply will shift rightward from AS 2 because nominal wage
demands will rise.
D. the price level will rise from P 2 to P 3 .