Monopolistic competitors engage in product differentiation to:
a. enhance their market power.
b. make it easer to collude with other firms
c. reduce costs.
d. create excess capacity.
Ans: a. enhance their market power.
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Which of the following would NOT be a reason why developed nations would try to coordinate their macroeconomic policies?
A) To achieve a desirable level of world economic growth B) To avoid imposing a disproportionate burden on one major country in its attempt to help other world economies C) To stimulate production in other countries using the higher incomes generated by policy coordination D) To coordinate retaliatory policies on developing countries' trade barriers E) None of the above. That is, A, B, C, and D are all correct.
If the German interest rate is 4% and the U.S. interest rate is 5%, what is the expected change in the value of the dollar in terms of the euro?
A) 1% B) -1% C) 9% D) -9%
Potential problems with incentive based compensation are
a. not evaluating the relevant performance measures b. rewarding outcomes that are not include in the performance evaluation c. not funding rewards for meeting performance measures d. all of the above
If the market interest rate decreases, then there will be _____
a. an upward movement along the investment demand curve b. a downward movement along the investment demand curve c. a rightward shift of the investment demand curve d. a leftward shift of the investment demand curve e. no movement along or shift of the investment demand curve