Weekly Review Quiz as of 2008-05-22
Economics:Micro
Microsoft Revives Yahoo Fight, Considers More Limited Deal
by Robert A. Guth, Kevin J. Delaney and Matthw Karnitschnig
05/19/2008
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1. Microsoft Corp. has proposed to Yahoo Inc. a deal related to advertisements that run next to Internet search results so that
a) Microsoft can prop up ailing Yahoo.
b) Yahoo can exit the search-engine business.
* c) Microsoft can compete more effectively with Google Inc.
d) Yahoo can attain its goal of the eventual acquisition by Microsoft.
e) Yahoo can avoid the head-to-head competition with Google.
Daimler, BMW Discuss Linkup on Components
by Edward Taylor
05/19/2008
2. BMW, AG, and Daimler AG's Mercedes-Benz Cars division are in talks to
a) negotiate the acquisition of BMW by Daimler.
b) negotiate the acquisition of Daimler by BMW.
c) set the prices of their automobiles.
* d) explore teaming up in developing, producing and purchasing car components.
e) carve up the areas of the world in which agree not to compete.
Dairy Co-Op Faces Price-Manipulation Probe
by John R. Wilke
05/19/2008
3. Federal regulators are investigating allegations that the nation's largest dairy cooperative, Dairy Farmers of America, has
* a) manipulated milk and cheese prices.
b) manipulated yogurt prices.
c) manipulated butter prices.
d) exerted monopsony power with dairy farmers.
e) violated the Robinson-Patman act.
U.S. Military Launches Alternative-Fuel Push
by Yochi J. Dreazen
05/21/2008
4. With fuel prices soaring, the U.S. military, the country's largest single consumer of oil, is
a) ordering soldiers and marines in Iraq to walk instead of drive.
* b) turning into alternative-fuels pioneer.
c) using its monopsony power to negotiate better fuel prices.
d) keeping more of its ships and aircraft in their home bases.
e) asking Congress to place price ceilings on gasoline.
Car Makers' Boom Years Now Look Like a Bubble
by Neal E. Boudette and Norihiko Shirouzu
05/20/2008
5. The auto industry is forecasting a return to annual sales of just below 15 million units per year, where they were in the 1990s, from a high of 17.4 million in 2000 because
a) The auto industry is forecasting a return to annual sales of just below 15 million units per year, where they were in the 1990s, from a high of 17.4 million in 2000 because
b) automakers’ purchase incentives no longer pull new buyers into the market.
* c) gasoline prices are expected to remain high and automakers’ purchase incentives no longer pull new buyers into the market.
d) U.S. automakers have hit production capacity constraints for the top-selling models.
e) Consumer tastes have changed and wage earners have moved closer to their places of employment.