The Bretton Woods agreement was reached
a. immediately after the Civil War
b. just before World War I
c. just after World War I
d. just after the Great Depression
e. toward the end of World War II
QUESTION 2If a firm experiences economies of scope, per unit production costs fall as it produces more than one kind of product.
a. True
b. False
QUESTION 3The main goal of the Bretton Woods meeting was to
a. curb inflation
b. encourage gold production
c. set world prices for gold
d. set up a new international system of payments and to stabilize exchange rates
e. help less-developed countries of the Third World to develop economically
QUESTION 4Which of the following is the best example of a vertically integrated firm?
a. General Electric, which produces light bulbs, jet engines, washing machines, and so on
b. Kinko's, which has a photocopy store near many colleges and universities
c. Americam Apparel, which from a single building in downtowm LA, controls the dyeing, finishing, designing, sewing, cutting, marketing and distribution of the company's product.
d. Intel, which makes computer chips for most of the computer manufacturers
e. Century 21, which has real estate offices that help people sell a house in one city and buy another house in another city
QUESTION 5The Bretton Woods system fixed all exchange rates in terms of the U.S. dollar.
a. True
b. False
QUESTION 6Which of the following is the best example of a vertically integrated firm?
a. General Electric, which produces light bulbs, jet engines, washing machines, and so on
b. Kinko's, which has a photocopy store near many colleges and universities
c. USX Corporation, which owns ore and coal mines, coke ovens, blast furnaces, mills, and foundries
d. Intel, which makes computer chips for most of the computer manufacturers
e. Century 21, which has real estate offices that help people sell a house in one city and buy another house in another city
QUESTION 7The Bretton Woods agreement established the gold standard.
a. True
b. False
QUESTION 8If the quality of an input is easily determined at the time of purchase, then it is likely to
a. be the cause of high transaction costs of using markets
b. encourage vertical integration of a firm
c. encourage supplier firms to produce low-quality inputs
d. be produced internally by the firm
e. be purchased in the market