Which of the following would erode the monopoly pricing power of a firm that was controlling a market?
A. The development of substitutes for the product by other firms.
B. New technology developed by the firm that lowered long run average costs.
C. A tax on corporate profits.
D. All of these would reduce the monopoly power of the firm.
Answer: A
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Technical support provided by an Indian firm to a multinational company headquartered in New York is an example of a(n) ________
A) capital account transaction B) export of services by India C) transfer payment to the U.S. D) import of services by India
Economists use different definitions of money because
A) deposits can be domestic or international. B) deposits may be held at banks or savings and loans. C) it is not always clear which assets are used primarily as money. D) there are differences in the frequency with which depositors use their accounts.
The steeply upward sloping yield curve in the figure above indicates that ________ interest rates are expected to ________ in the future
A) short-term; rise B) short-term; fall moderately C) short-term; remain unchanged D) long-term; fall moderately
Why is judging trends in economic indicators important to managers?
What will be an ideal response?