Which of the following is not a cost of decentralization of corporate decisionmaking?
A. More effective use of local knowledge
B. Less effective use of central information
C. Coordination costs and failures
D. Incentive problems
Answer: A
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Economic analysis is useful is resolving all of the following types of issues EXCEPT:
A. positive B. monetary policy C. normative D. fiscal policy
Suppose there is a tradeable goods market (such as products like textiles that can be shipped across markets) and a non-tradable goods market (such as services like hair cuts). Can outsourcing impact wages in the non-tradable market?
What will be an ideal response?
Because barriers to entry limit the amount of competition in various markets, government policy should be designed to reduce or eliminate such barriers wherever possible
Indicate whether the statement is true or false
An expansionary monetary policy is one that
A) stimulates aggregate supply. B) reduces aggregate supply and aggregate demand. C) stimulates aggregate demand. D) reduces aggregate demand while stimulating aggregate supply.