In 1996, All-Points Flashlights merged with North Star Flashlights to form a new company called Allstar Flashlights. In 1997, Allstar Flashlights merged with Bright Idea Lightbulbs to form a new company called Bright Star. Then, in 2000 . Bright Star
merged with Wendy's Kites & Stuff, a company that produces paper kites and other toys, to become BSK International. Describe the kinds of mergers that took place.
The 1996 merger was a horizontal merger where the firms are producing the same good in the same
industry. The 1997 merger was a vertical merger between firms that have a supplier-purchaser relationship.
Finally, the year 200 . merger was a conglomerate merger between firms in unrelated industries.
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All welfare programs are means-tested income transfers
Indicate whether the statement is true or false
The problem of moral hazard arises because
a. life is full of all sorts of risks. b. after people buy insurance, they have less incentive to be careful about their risky behavior. c. a high-risk person is more likely to apply for insurance than is a low-risk person. d. insurance companies go to great effort to avoid paying claims to their policy holders.