Weekly Review Quiz As of 2009-02-26 s1

Weekly Review Quiz as of 2009-06-11
Economics: Micro

Investor Firm to Tap GM's Fresh Billions to Buy Delphi
by Peter Lattman
06/08/2009
http://online.wsj.com/article/SB124415849847687023.html

1. General Motors Corp. has agreed to finance a private-equity firm’s buyout of bankrupt auto-parts company

* a) Delphi Corp.
b) TRW Automotive Holdings.
c) Delco Electronics Corp.
d) Freenex Co. Ltd.
e) American Axle & Manufacturing, Inc.

To Sustain iPhone, Apple Halves Price
by Yukari Iwatani Kane
06/09/2009
http://online.wsj.com/article/SB124448050292994727.html

2. Apple Inc. is making the aggressive move of halving the price of its entry-level iPhone 3G to $99 to

a) increase its short-run revenues on this entry-level model.
b) increase the short-run demand for its high-level iPhone 3G S model.
c) increase the short-run demand for this entry-level model at the expense of future iPhone sales.
d) enhance the allure of the iPhones.
* e) enhance its first-mover advantage.

3. Analysts said they are watching to see if AT&T – the iPhone’s exclusive wireless carrier in the U.S. – will

* a) cut its monthly service prices.
b) reduce the flexibility of its plans.
c) eliminate the flexibility of its plans, by offering only one monthly plan.
d) offer Palm Inc.’s new smart phone, the Pre.
e) increase its monthly service prices.

High Court Clears Way for Sale of Chrysler
by Mark H. Anderson and Neil King Jr.
06/10/2009
http://online.wsj.com/article/SB124453532783397365.html

4. Chrysler LLC’s restructuring under Chapter 11 bankruptcy, which has been approved by the U.S. Supreme Court, calls for the company to form an alliance with

a) General Motors Corp.
* b) Fiat SpA.
c) Toyota Motor Corp.
d) Mitsubishi Motors Corp.
e) Renault S.A.

Salaries Safe, Bonuses Hit
by Deborah Solomon
06/10/2009
http://online.wsj.com/article/SB124460111423500951.html

5. The Obama administration is

a) permitting the market to determine the salaries and bonuses at firms receiving government bailout money.
b) dropping its plan to limit bonuses at firms receiving government bailout money.
c) proposing that firms that receive government bailout money must replace their chief executives.
* d) insisting that firms that receive government bailout money must cap salaries.
e) dropping its plan to cap salaries at firms receiving government bailout money.