If Frito Lay, an American snack company, opens a new manufacturing facility in Mexico and produces snacks which are distributed in South America, then Mexico's GDP ________ and U.S. GDP ________
A) increases; does not change
B) does not change; increases
C) increases; decreases
D) increases; increases
A
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Several national fast-food chains offer "kids' meals" with free giveaway toys, something many independent, local establishments cannot afford to do. The national chains are
A) engaging in predatory pricing. B) selling meals below cost. C) distributing toys below cost. D) engaging in anti-competitive behavior because the independents cannot afford to give away toys. E) almost certainly doing none of the above.
How do recent current account deficits compare to GNP and to past ratios?
What will be an ideal response?
When using the traditional command-and-control approach to environmental regulation, the government attempts to:
A. set a minimum requirement and then allows the firm to determine the most efficient method for achieving this requirement. B. determine the most efficient method for different industries. C. make allowances for differences across industries and between firms. D. set standards that are applicable to all situations and does not recognize unique circumstances.
Requiring government agencies to report which company had the lowest bid for a government contract and the level of the bid,
A) can help a cartel enforce its agreement. B) can speed up the end of a cartel. C) may foster competition. D) may help a cartel to lower its price.