The manager of View Your World, a high-end window manufacturer, notices that the cost to distribute their windows in the spot market has risen. As a result of the change, which of the following is true?
A) The manager has more of an incentive to integrate forward.
B) The manager has more of an incentive to integrate backward.
C) The manager has less of an incentive to integrate backward.
D) The manager has less of an incentive to integrate forward
A) The manager has more of an incentive to integrate forward.
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An unexpected exogenous event which has a significant impact on an important sector of the economy or on the economy as a whole is called a(n)
A) macroeconomic shock. B) countercyclical fluctuation. C) downward economic spiral. D) autonomous destabilizer.
If the government lowered the capital gains tax, what would be the effect in the loanable funds market? (Assume the government does not run a budget deficit.)
a. Both the supply and demand for funds would increase, lowering the interest rate and raising investment spending. b. The supply of funds would decrease, raising the interest rate and lowering investment spending. c. The supply of funds would decrease, lowering both the interest rate and investment spending. d. The supply of funds would increase, lowering both the interest rate and investment spending. e. The supply of funds would increase, lowering the interest rate and raising investment spending.
The current account balance is equal to
A. Exports minus imports. B. The trade balance times unilateral transfers. C. The trade balance plus unilateral transfers plus net investment income. D. Imports minus exports.
Fiscal policy is determined by
A) the Federal Reserve. B) the president and the Federal Reserve. C) Congress and the Federal Reserve. D) Congress and the president.