All of the following represent advantages or disadvantages of independent entry into a foreign market except which one?
A) The managers do not risk divided interests; the managers will make decisions based on the interest of the firm.
B) Managers retain total control over operations.
C) All profit (or losses) is (are) reserved for the firm.
D) Managers immediately gain familiarity with the foreign markets, laws, and traditions.
D) Managers immediately gain familiarity with the foreign markets, laws, and traditions.
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Which of the following statements about implicit costs is true?
A. They measure the forgone opportunities of the firm's owners. B. They exceed explicit costs. C. They are always fixed. D. They do not enter into the calculation of economic profit.
Suppose a country is producing $20 million of real GDP. If the economy grows at 10 percent per year, approximately how many years will to take for real GDP to grow to $80 million?
A) 14 B) 7 C) 4 D) 30
Which of the following factors will lead to a decrease in the current supply of a good?
A. A fall in the current price of a good or service B. A decrease in the price of inputs to the production process C. A technological advance that decreases production costs D. A belief that the price of a good or service will go up in the future
To internalize the external costs of pollution is to:
A. make the polluter pay all of the costs associated with the polluting activity. B. require that private citizens rather than taxpayers pay for the harmful effects of pollution. C. levy taxes on manufacturing firms located in crowded urban areas. D. auction off pollution rights to those willing to pay the most for them.