Define what a firm is and its role in the market
What will be an ideal response?
The firm is an organization that transforms resources (inputs) into products (output). Firms are the primary producing units in a market economy.
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Because of its extremely low savings rate the U.S. borrows almost $____ billion dollars a day from ___________ to finance our federal budget and trade deficits.
Fill in the blank(s) with the appropriate word(s).
Which of the following is NOT a step to calculate the true cost of a stockout?
a. Develop a customer satisfaction survey b. Evaluate customer response c. Estimate consequence costs d. Calculate the expected stockout cost e. All of the above f. Only B, C, and D
Under the Bretton Woods system, a country with a balance of payments deficit
A. could get loans from the U.S. government. B. could devalue if deflationary policies failed to eliminate the deficit. C. was not allowed to devalue under any circumstance. D. was required to devalue its currency immediately.