Catering, trucking, copying, and mainframe computing are among frequently outsourced services because these activities:
A. have a relatively low potential for holdup actions.
B. are not specialized.
C. have a high level of uncertainty.
D. require assets that are highly firm specific.
Answer: A
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If the price elasticity of demand for smart watches is 1.4 (dropping the minus sign), then a 50 percent increase in the price of smart watches will lead to
A. the sale of 200 additional smart watches. B. the sale of 125 percent fewer smart watches than before. C. the sale of 70 percent fewer smart watches than before. D. the sale of 25 percent fewer smart watches than before.
Since 1970, the composition of federal expenditures has:
a. been virtually unchanged, but federal spending as a share of GDP has declined substantially. b. been virtually unchanged, but federal spending as a share of GDP has increased sharply. c. shifted away from national defense and toward spending on income security. d. shifted away from income security income transfers and toward spending on national defense.
The main advantage of the Eurocurrency market is that investment funds cannot be subject to foreign government controls
a. True b. False Indicate whether the statement is true or false
The interest rate that the Fed charges banks to borrow funds from the Fed is the
A. federal funds rate. B. money market rate. C. nominal interest rate. D. discount rate.