Weekly Review Quiz as of 2008-06-05
Economics:Micro
GM Shifts its Strategy into Reverse
by John D. Stoll
06/04/2008
1. GM is especially harmed by rising gas prices and a sluggish U.S. economy because
a) unionized workers recently negotiated three-year higher-wage contracts.
b) Toyota, with its redesigned Tundra, has eclipsed GM’s pickup truck sales.
* c) GM in 2005 bet big on trucks by ramping up production of these vehicles.
d) most of GM’s sale are in the U.S.
e) GM’s “one year of free gasoline” program for the purchase of new cars is proving to be extremely costly.
Slowdown Generates Static for XM, Sirius
by Sarah McBride
06/03/2008
2. While XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. await final regulatory approval of their proposed merger, the largest concern to the two companies is
* a) persuading consumers to pay for premium radio service at a time of rising gas prices and a weakened economy.
b) the design of the executive duties in the merged company.
c) recent FCC leanings to regulate the prices of satellite radio.
d) the lower than expected listenership of Howard Stern.
e) the disagreements between the CEOs of the two firms.
The $10 Million Arm
by Matthew Futterman
05/30/2008
3. Some Major League Baseball teams are unwilling to choose top prospects in baseball’s amateur draft because
a) their minor league farm systems, needed to develop these players, have been struggling.
b) they are bumping up against MLB salary caps.
c) they are willing to give up these players to their less-successful MLB rivals.
d) their statistical models predict that these players are not good financial investments.
* e) they will have trouble offering them enough money.
Gadgets Priced for Frugal Times
by Christopher Lawton
06/03/2008
4. Consumer-electronics makers have spotted a recent trend in consumer purchases and are responding to this trend by
a) setting the prices of their top of the line gear at below cost.
* b) expanding their lineup of lower-priced tech toys.
c) vertically integrating into retail sales.
d) shifting more production from their Mexican plants to China.
e) Dropping altogether their most expensive products.
Taxpayers May Face Hurricane Tab
by Elizabeth Williamson
05/31/2008
5. The proposal by Democrats in Congress to nationalize reinsurance that covers major storm-damage claims
* a) is backed by giant insurance companies and criticized by environmentalists.
b) is criticized by giant insurance companies and backed by environmentalists.
c) is backed by giant insurance companies and environmentalists.
d) is criticized by giant insurance companies and environmentalists.
e) none of the above.