Which of the following is a possible reason for diversification?
A. To promote the supply of complementary products
B. To internalize negative externalities
C. To increase social benefits
D. To promote the supply of substitute products
Answer: A
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A linear demand curve:
A. has a constant elasticity. B. will be more elastic when price is low and more inelastic when price is high. C. must be either perfectly inelastic or perfectly elastic. D. has a constant slope.
The free-market system coordinates output decisions by pushing
A. up price when there is a shortage. B. down price when quantity demanded exceeds quantity supplied. C. up price when there is a surplus. D. up price when quantity supplied exceeds quantity demanded.
Which one of the following is among the Federal Reserve's tools to control short-term interest rates?
A. Limits on credit card interest rates B. Raising or lowering taxes on financial institutions C. Controlling the demand for money D. Open market operations
Variables X and Z in the table below are:
A. Positively related
B. Negatively related
C. Independent
D. Nonlinearly related