To be economically successful, the entrepreneur must
a. combine resources in a manner that increases their value.
b. produce a good that consumers value less than the resources used to produce it.
c. use only personal financial capital to avoid the interest payments that would have to be paid if the money is borrowed from the bank.
d. transform or rearrange resources to maximize the entrepreneur's cost of production.
A
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Answer the following statements true (T) or false (F)
1) Foreign firms and foreign citizens are exempt from U.S. antitrust laws. 2) If an illegal per se act has been proven to have occurred, there is no defense possible. 3) If a firm engaged in a price-fixing agreement first reports the activity to the Department of Justice, the company still faces substantial fees because price-fixing is illegal per se. 4) Bid rigging is analogous to price fixing. 5) Resale price maintenance can prevent showrooming.
The concept of scarcity as used by economists refers to:
a. a situation of excess supply. b. a situation in which the available resources are not enough to satisfy the wants of the people at a zero price. c. a situation in which an item is available only in very small quantities. d. a situation in which an item is very expensive. e. a situation in which a resource is nonrenewable.
According to the quantity equation, if velocity and real GDP are constant, and the Federal Reserve increases the money supply by 5 percent, then the price level:
A. increases by 5 percent. B. decreases by 5 percent. C. decreases by more than 5 percent. D. increases by more than 5 percent.
A U.S. automobile dealer has ordered a fleet of Japanese cars worth 10 million yen. The terms of payment is C.O.D. (cash on delivery). At the time the order was placed, the exchange rate was 100 yen per U.S. dollar. When the fleet arrived the exchange
rate had become 200 yen per U.S. dollar. A) This change in the foreign exchange rate will hurt the U.S. importer. B) This change in the foreign exchange rate will hurt the Japanese exporter. C) This change in the foreign exchange rate will benefit the U.S. importer. D) This change in the foreign exchange rate will benefit the Japanese exporter.