Transfer prices
a. are an accounting devise to allocate the costs and revenues of intermediate products across divisions
b. increase the 'profits' of the profit center producing the intermediate product when they rise
c. decrease the 'profits' of the profit center using the intermediate product when they rise
d. all of the above
d
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Division of _______ is the way a good or service that is produced is divided into a number of tasks that are performed by different workers, instead of all the tasks being done by the same person.
a. resources b. labor c. money d. tasks
A good is considered nonexcludable if
a. many individuals can share in the consumption of the same unit of the good. b. the consumption of the good by one individual lowers the amount available for others. c. it is impossible or very costly to exclude nonpaying customers from receiving the good. d. its production is financed through tax revenue rather than market prices.
The opportunity cost of housing =
What will be an ideal response?
In Operation Desert Storm, oil facilities in Iraq were attacked amid strong demand for oil. In response, political pressure motivated OPEC to increase the daily quota by 2 million barrels a day. Assuming demand did not change, which of the following series of prices most likely matches how the price of a barrel of oil changed from (1) before the attack, to (2) just after the attack, to (3) after OPEC increased the quota?
A. $40, $42, $38 B. $42, $38, $40 C. $38, $40, $42 D. $42, $40, $38