One In the News feature reports that General Motors planned to essentially quit making cars and trucks in the United States for nine weeks from mid-May through July 2009 and Omaha Power planned to close one of its nuclear plants permanently. Based on these particular news clips, what is the difference between GM's and Omaha Power's decisions?

A. Omaha Power was trying to get rid of excess inventory, and GM was trying to become more efficient.
B. There is no difference between GM's and Omaha Power's decisions; both were trying to get rid of excess inventory.
C. GM was trying to maximize profits while Omaha Power was trying to minimize losses.
D. GM's decision to idle plants was a short-run shutdown decision. Omaha Power, by contrast, made a long-run decision to exit a specific market.


Answer: D

Economics

You might also like to view...

If a trader thinks that the value of yen with respect to the euro is about to fall, which of the following would enable him to make a profit?

A) buy a forward contract for euros B) buy a forward contract for yen C) sell yen in the spot market D) buy euros in the spot market

Economics

Suppose output is $35 billion, government purchases are $10 billion, desired consumption is $15 billion, and desired investment is $6 billion. Absorption is equal to

A) $25 billion. B) $31 billion. C) $35 billion. D) $39 billion.

Economics

A higher desired level of capital and investment will result from ________

A) a decrease in productivity B) a fall in expected future output C) a depressed economy D) a booming economy

Economics

Rationality is a normative concept

Indicate whether the statement is true or false

Economics