Which of the following is a Leading Economic Indicator? A) commercial and industrial loans outstanding B) industrial production C) average weekly duration of unemployment D) None of the above ANSWER D
Date: September 9th, 2020
There are 10 identical internet service providers (ISPs) in a city serving a market demand with an elasticity of -1.5. The elasticity of supply for each firm is 3.0. The elasticity of demand faced by an individual ISP is A) -42. B) -15. C) -1.5. D) -27. ANSWER A
Date: September 9th, 2020
Assume that a multinational company produces components in country A and ships them to a subsidiary in country B. In order to increase its profits A) the company should charge a high transfer price for the components if income taxes in country B are higher than in country A. B) the company should charge a […]
Date: September 9th, 2020
The residual demand curve is A) the market demand minus the supply of other firms. B) the remaining demand after the market clears. C) the market demand minus the supply of one firm. D) the long-run demand for a market. ANSWER A
Date: September 9th, 2020
Revenue maximization occurs when a firm sells at a price A) that is equal to its minimum average variable cost. B) where its marginal revenue is equal to its marginal cost. C) where its marginal revenue is zero. D) None of the above ANSWER C
Date: September 9th, 2020
Environmental CSR that is undertaken to reduce negative externalities might be A) altruistic. B) strategic. C) undertaken because of Internet-based scrutiny. D) All of the above. ANSWER D
Date: September 9th, 2020
The above figure shows the market for steel ingots. What is the total surplus under social optimum? A) $2500 B) $5000 C) $6500 D) Not enough information. ANSWER A
Date: September 9th, 2020
An explanatory forecasting technique in which the analyst must select independent variables that help determine the dependent variable is called A) exponential smoothing. B) regression analysis. C) trend analysis. D) moving average method. ANSWER B
Date: September 9th, 2020
Transfer pricing is a method used to A) determine whether a firm should make or buy a component product. B) determine the correct value of a product as it moves from one stage of production to another. C) minimize a multinational firm’s tax liabilities. D) All of the above ANSWER D
Date: September 9th, 2020
Assuming a homogeneous product, the Bertrand duopoly equilibrium price is A) the same as the Cournot equilibrium price. B) less than the Cournot equilibrium price. C) greater than the Cournot equilibrium price. D) equal to the monopoly price. ANSWER B
Date: September 9th, 2020
