The rate of new entry into an industry is independent of the industry’s concentration. Indicate whether the statement is true or false ANSWER F A high rate of entry brings new small firms into an industry regularly and contributes to a low level of concentration; a low rate of entry allows successful firms to […]
Date: September 9th, 2020
The worldwide trend is for populations to be increasingly: a. Mobile and urban b. Insular and stay at home c. Spread out rural to seaside d. Northern moving because of global warming ANSWER A
Date: September 9th, 2020
Management is the process of: a. Controlling others’ lives b. Using resources to achieve goals c. Changing one’s perspective for the better d. Acting in a habitual or repetitive pattern ANSWER B
Date: September 9th, 2020
Stock options make managers who receive them have exactly the same goals as shareholders. Indicate whether the statement is true or false ANSWER F Option holders share in gains (without making shareholders’ investments) but do not share in losses.
Date: September 9th, 2020
Efficiency is an important motive for merger. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
The World’s most populous country is: a. The United States b. Greece c. India d. China ANSWER D
Date: September 9th, 2020
Problems of double marginalization can be overcome without vertical merger. Indicate whether the statement is true or false ANSWER T Between manufacturer and retailer, for example, a two-part price may overcome the problem.
Date: September 9th, 2020
Global warming is an externality. Indicate whether the statement is true or false ANSWER T We don’t bear the full costs of decisions we make now, but costs will have to be borne in future.
Date: September 9th, 2020
Compared with a partnership, a corporation can raise money more easily because owners of a corporation have less liability for the corporation’s actions than owners of a partnership have for the partnership’s actions. Indicate whether the statement is true or false ANSWER T Shareholders in a corporation can only lose what they have invested, […]
Date: September 9th, 2020
Suppose an employer has monitoring devices established so that the probability of an employee being caught while shirking is 0.2. If the gain to the employee from shirking is $1,000, how large a bond will deter shirking? What will be an ideal response? ANSWER B = 1000/0.2 = $5,000. With a $5,000 bond and […]
Date: September 9th, 2020
