Stock options for corporate managers plays a part in handling the conflict between management and __________ in __________-oriented financial systems
A) bankers; markets
B) bankers; banking
C) stockholders; markets
D) stockholders; banking
C
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Suppose the production of helicopters is an industry characterized by increasing returns to scale and an Argentine firm, Cicare, is the only player in this market. The firm caters to the global market and earns a profit of $10 million. Flettner, a German firm has been considering entering this market for a while, but it is aware that its entry will cause each firm to lose about $4 million
However, a government subsidy allows Flettner to enter the helicopter market and Cicare incurs a loss of $4 million due to its entry. Eventually, Flettner evolves as the monopoly supplier of helicopters while Cicare is forced to shut down. This conclusion rests on which of the following assumptions? a. The German government is experiencing a budget surplus. b. There is low demand for Cicare automobiles in the world market. c. The German government is able to forecast accurately the subsidy required to induce helicopter production. d. The quality of Flettner's helicopters are inferior compared to that of Cicare's. e. The Argentine government is not a proponent of "fair trade," hence does not retaliate by subsidizing Cicare.
The money multiplier is _____ when the reserve ratio is 12.5 percent
Fill in the blank(s) with correct word
When there is no deflation or inflation,
A. Relative prices remain unchanged. B. Prices of all goods change by the same percentage. C. Average prices do not change. D. Full employment is achieved.
If a local leader in a developing nation claims that there is little or no correlation between a person's efforts and the economic rewards which are given to that person, this person is most likely expressing a:
A. Description of the vicious cycle of poverty B. Theory of exploitation and dependence C. Capricious view of the universe D. Rationale for neocolonialism