When real GDP is less than potential GDP, an increase in government expenditures will __________ real GDP and __________ the price level
a) increase; raise
b) increase; lower
c) decrease; raise
d) decrease; lower
a) increase; raise
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The foreign entry methods of ________ and ________ tend to be associated with smaller financial commitments.
A) mergers; joint ventures B) partnerships; mergers C) partnerships; franchising D) mergers; franchising
Which of the following does NOT affect a worker's marginal productivity?
A) education B) training C) talent D) inheritance of money
In its monthly production analysis, a door manufacturer determines that the marginal cost of producing an additional door is higher than the firm’s average total cost. This means that if no other variables change this month, and the firm produces more doors, ______.
a. average variable cost will rise, and average total cost will fall b. average variable cost and average total cost will both rise c. average fixed cost and average total cost will both rise d. average variable cost will fall, and average fixed cost will rise
If top managers make good decisions, the firm's profits will be ________, and the firms assets will be ________
A) high; small relative to its liabilities. B) high; large relative to its liabilities. C) equal to its revenues; small relative to its liabilities. D) low; large relative to its liabilities