When asset specificity is very high and there is a lot of market uncertainty, then it is best for a firm to:
A. vertically integrate.
B. buy in the open market.
C. engage in a joint venture.
D. use a long-term contract.
Answer: A
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Which of the following variables is used to determine a country's economic growth?
i. real GDP ii. wages iii. inflation A) ii and iii B) i, ii and iii C) i and ii only D) i only E) i and iii
Which of the following statements about checking deposits is true?
A) It is a liability for both households and banks. B) It is an asset for both households and banks. C) It is an asset for households but a liability for a bank. D) It is a liability for households but an asset for a bank.
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
The rationing function of prices refers to the fact that government must distribute any surplus goods that may be left in a competitive market.
Answer the following statement true (T) or false (F)