Firms may be tempted to cheat on cartel agreements by:
a. raising both price and output
b. lowering both price and output.
c. raising price and reducing output.
d. lowering price and increasing output.
d
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Which of the following will cause a movement along the supply curve?
a. An increase or decrease in the raw materials costs. b. An increase in labor costs. c. Changes in the cost of the machinery used to make a good. d. Changes in the market price of a good, other things held constant.
Discounting is the process of
a. cutting prices to get rid of surplus stocks. b. finding the present value of future dollars. c. finding the future value of present dollars. d. giving special concessions to special customers.
Which of the following statements is correct, when the exchange rate changes from €2/$ to €1.5/$?
a. Both the euro and the dollar appreciate. b. Both the euro and the dollar depreciate. c. None of the above. d. The euro (€) depreciates. e. The euro appreciates and the dollar depreciates.
If people expect future earnings of Galt Corporation to be high relative to current earnings, then
a. the P/E ratio of its stock will be high. A P/E ratio of 8 is relatively high. b. the P/E ratio of its stock will be high. A P/E ratio of 8 is relatively low. c. the P/E ratio of its stock will be low. A P/E ratio of 8 is relatively high. d. the P/E ratio of its stock will be low. A P/E ratio of 8 is relatively low.