Entry to and exit from a(n) ________ market are ________.
A. oligopolistic; easy
B. contestable; difficult
C. perfectly competitive; difficult
D. contestable; easy
Answer: D
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Countries are concerned about small changes in their average annual growth rates in per capita income because
A) growth rates are a factor in U.N. participation. B) the power of compounding means small changes have large effects over time. C) growth rates tend to decline over time. D) the faster a country grows today, the less it will be able to consume in the future.
Which of the following would cause the IS curve to shift to the left?
A) an increase in government expenditures B) a decrease in the money supply C) an increase in domestic investment D) a decrease in taxes
A "risky" asset will earn a rate of return close to that of "riskless" assets if its risk is
A) nondiversifiable. B) diversifiable. C) nominal, as opposed to real. D) related to the rate of inflation. E) no greater than the risk of similar assets.
Tiffany needs to assess the market risk in order to decide when to launch a new product. He decides to delegate the task of risk assessment to Joe who is a competent employee of the firm. Which of the following conclusions can be drawn from this?
a. Joe has the required tools and resources to carry out the order. b. Joe is above Tiffany in the hierarchy of this firm. c. The chances that Joe's assessment will be accurate are very high. d. Tiffany is well equipped to analyze the information he passes on to Joe.