An investor practicing hedging would be most likely to:
A. put his/her invested funds in CDs.
B. purchase shares in general motors and Amoco oil.
C. avoid the stock market and focus on bonds.
D. purchase shares in general motors and buy U.S. treasury bonds.
Answer: B
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A change in the price of one good results in a rotation of the budget line, so that it is steeper or flatter.
Answer the following statement true (T) or false (F)
In the event that nominal short-term interest rates cannot be lowered further, the Federal Reserve might rely on ________
A) federal government fiscal policy B) targeting the fed funds rate C) quantitative easing D) targeting the inflation rate
An example of organizational architecture based on customer location is when divisions are defined as
a. R&D, Engineering, Production, Marketing, Sales b. Component 1 Plant, Component 2 Plant, Component 3 Plant, Final Assembly c. Store 1, Store 2, Store 3, Region A, Region B, Sales Division d. Business Customers, Educational Customers, Household Customers
If the firms in a monopolistically competitive industry are suffering short-run losses, which of the following will occur in the long run?
a. Some firms will enter the industry. b. Customers of firms that leave the industry will switch to remaining firms. c. Firms that remain in the industry will face reduced demand. d. Firms will continue to incur losses. e. There will be no excess capacity.