To say that a management proposal has distributional consequences means that:
A. it will disrupt the company's current distribution and marketing channels.
B. warehouses will be overstocked if it is ratified and implemented.
C. it will benefit some managers and harm others if implemented.
D. dividends will no longer be paid on the stock each quarter if it is implemented.
Answer: C
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Banks in the United States may create new money equal to their amount of required reserves
a. True b. False Indicate whether the statement is true or false
The choice of transfer-pricing method:
A. does nothing to profits of sub-units. B. affects the firm's total profits. C. merely reallocates total company profits among its bigger units. D. merely reallocates total company profits among its smaller units.
Monetary policy administered by the Fed is the principal method of softening the effects of the business cycle because _____.
(A) The outside lag for fiscal policy is shorter than the outside lag for monetary policy. (B) There are more political complications with determining and implementing fiscal policy. (C) Fiscal policy is not effective at easing the fluctuations of the economy. (D) Monetary policy has the shortest total delay in implementing and achieving a planned outcome.
The marginal revenue product of an input in a competitive market decreases as a firm increases the quantity of the input employed because of the:
A. Law of diminishing returns B. Law of diminishing marginal utility C. Homogeneity of the product D. Free mobility of resources