Which of the following most clearly indicates why the franchiser of a product has a strong incentive to monitor the quality of the product among all of the franchised sellers?
a. The franchiser has a monopoly on the sale of products in his industry.
b. If quality is not maintained, the franchiser will be limited in his ability to sell other franchises and collect franchise fees.
c. If quality is not maintained, the government will prohibit future sales of the franchises.
d. Franchisers do not gain financially by maintaining quality, but they generally maintain quality anyway because they are consumers as well as producers.
B
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A scatter diagram of money growth rates and inflation rates from 1982 to 2010 indicates
A. a clear direct relationship between money growth and inflation. B. a clear indirect relationship between money growth and inflation. C. no clear relationship between money growth rates and inflation. D. that inflation is always and everywhere a monetary phenomenon.
Suppose you only consume rice and bananas. Can both of these goods be Giffen goods in your consumption?
A) Yes, this is possible B) No, at least one of the goods must be normal C) No, they both can be inferior, but at least one of the goods cannot be a Giffen good D) We need more information about the goods to answer this question
Which of the following is an example of a depreciation payment?
a. Zoom, Inc. set aside an allowance of $500,000 to eventually replace their jet ski factory. b. CleanPrint, Inc. paid $1 million to restock its supply of printing cartridges. c. TotalOffice, Inc. receives $50,000 per month for renting an office space. d. FirstStart, Inc. receives $500,000 in profit for last year for management consulting.
A highly charitable person, such as Mother Theresa, will be influenced by
What will be an ideal response?