Informal Linkage Mechanisms Should Be Used When Companies

question 43

Multiple Choice

Informal linkage mechanisms should be used when companies:

• A) have many possible exchange partners and uncertainty is high.
• B) exchange nonspecific goods and uncertainty is low.
• C) exchange nonspecific goods and have few possible exchange partners.
• D) exchange specific goods and have many possible exchange partners.

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Definitions:

Unemployment Rate

The percentage of those in the labor force who are not working but are in search of employment.

Natural Rate

Often refers to the natural rate of unemployment, which is the level of unemployment consistent with a stable rate of inflation, not zero unemployment.

Unemployment

The situation in which individuals who are capable of working and are actively seeking work remain un-hired.

Money Growth

The increase in the amount of money in an economy over time.