The "home" equilibrium will provide the highest level of consumer satisfaction from domestic resources whenever:
a. the marginal products of labor are equal.
b. capital and technology are not factors in the decision of what to produce.
c. perfect competition in product and labor markets exists.
d. Adam Smith's "invisible hand" is not an interfering factor.
Ans: c. perfect competition in product and labor markets exists.
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Which of the following is a feature of an M-Form organization?
a. divisions have difficulty responding to changes in customer demand b. it is easier to maintain customer relationships c. coordination across divisions is simple and does not take much management time d. evaluating employees is easier because managers typically are similarly trained
In the market for crude oil, everything held constant, if rate of interest of simple bank accounts or interest-bearing investments decline, then:
a. the consumption of crude oil declines in the present period. b. the extraction of crude oil will increase today. c. the price of the crude oil in the international market falls in the present period. d. greater research and developments are conducted to locate new sites of crude oil in the present period. e. the extraction of crude oil will fall in the present period.