When a transfer price decreases
a. the costs of the division using the intermediate product will fall
b. the profits of the division using the intermediate product will be unaffected
c. the profits of the division using the intermediate product will fall
d. the profits of the division using the intermediate product will rise
d
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Which of the following represents dead capital?
A) capital that lacks clear title of ownership B) capital that has worn out over time C) capital that has become obsolete D) none of the above
Interest rates in the economy have fallen. How will this affect aggregate demand and equilibrium in the short run?
A) Aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of GDP will fall. B) Aggregate demand will fall, the equilibrium price level will fall, and the equilibrium level of GDP will fall. C) Aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of GDP will rise. D) Aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of GDP will rise.
According to the availability heuristic, the more easily we can recall examples of an event:
A. the more we like the event. B. the less we like the event. C. the more likely we judge the event to be. D. the less likely we judge the event to be.
In the absence of government or employer-sponsored health insurance, which of the following would be true about health expenses for the elderly?
A. The elderly would have to pay for health care expenses out of their current income. B. It would not be financially worthwhile for the elderly to purchase insurance to cover medical expenses. C. Insurance companies would earn greater profits on health insurance for the elderly. D. The elderly would only need to worry about catastrophic health events.