In a shopping mall in a large city, the Rudolph the Reindeer store sells only merchandise for the Christmas holiday season. Most of the store's revenue and profit are attributable to the months of October, November, and December. However, the store is open throughout the year. If the owner of the store is rational, what criterion does he or she use in deciding to keep the store open year-round?

Argon Inc., a designer handbag company, is planning to open its stores in Mexico. Which of the following is a technological factor that is likely to affect Argon's modes of operation in Mexico?

A) The method and style of communication used in Mexico
B) The stability of trade cycles in Mexico
C) Mexico's intellectual infrastructure
D) Mexico's social structure

The __________________ tells us that the expected return on a risky asset depends only on that asset's systematic risk.

A) Efficient Markets Hypothesis (EMH) .
B) Systematic risk principle.
C) Open Markets Theorem.
D) Law of One Price.
E) Principle of diversification.

In 2007,the richest 400 U.S.households earned an average income of $345 million.What was their average income tax rate?

A) 34 percent.
B) 25 percent.
C) About 17 percent.
D) Less than 12 percent.

In a television advertisement for AFLAC supplemental health insurance,an ice skater says to his skating partner,"Do you want to try a triple jump?" She responds,"Why not,I have AFLAC." This response illustrates the:

A) principal-agent problem.
B) adverse selection problem.
C) moral hazard problem.
D) free-rider problem.

From an economic perspective, studies of the costs of trade barriers show that they

A) are outweighed by the reduction in foreign competition provided by the barriers.
B) are much less than benefits for domestic producers and workers.
C) are about equal to the benefits from trade barriers.
D) far exceed their benefits for society.

What is the first step in performance management process?

A) evaluating performance
B) developing employee goals, behavior, and actions to achieve outcomes
C) providing consequences for performance results
D) defining performance outcomes for company division and department
E) identifying improvements needed