Which of the following is a common mistake managers make?
A. Maximizing the value of the firm instead of maximizing the firm's profits.
B. Increasing the rate of production in order to reduce unit costs of production.
C. Treating implicit opportunity costs as part of the total costs of using resources.
D. Using marginal analysis to make output decisions.
E. all of the above.
Answer: B
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Accelerator theory refers to the theory of
A) consumption that emphasizes that current consumer spending depends positively on the expected future growth of GDP. B) investment that emphasizes that current investment spending depends positively on the expected future growth of government spending. C) consumption that emphasizes that increases in consumption spending will result, through the multiplier effect, in greater increases in GDP. D) investment that emphasizes that current investment spending depends positively on the expected future growth of GDP.
Labor market regulations in European Union countries
a. do not contain limitations on plant closing but do have provisions for mandatory severance pay that may discourage firms from expanding employment. b. include limitations on plant closing but have no provisions for mandatory severance pay that may discourage firms from expanding employment. c. neither entail limitations on plant closing nor provisions for mandatory severance pay that may discourage firms from expanding employment. d. include limitations on plant closing and provisions for mandatory severance pay that may discourage firms from expanding employment.