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Most economists in the United States seem captivated by spell of the free market. Consequently, nothing
seems good or normal that does not accord with the requirements of the free market.
A price that is determined by the seller or for that matter, established by anyone other than the aggregate
of consumers seems pernicious, accordingly, it requires a major act of will to think of price fixing (the
determination of prices by the seller) as both "normal" and having a valuable economic function. In fact,
price-fixing is normal in all industrialized societies because the industrial system itself provides, as an
effortless consequence of its own development, the price-fixing that requires, Modern industrial planning
requires and rewards great size. Hence a comparatively small number of large firms will be competing for
the same group of consumers. That each large firm will act with consideration of its own needs and thus
avoid selling its products for more than its competitors charge is commonly recognized by advocates of
free-markets economic theories. But each large firms will also act with full consideration of the needs that
it has in common with the other large firms competing for the same customers. Each large firm will thus
avoid significant price cutting, because price cutting would be prejudicial to the common interest in a
stable demand for products. Most economists do not see price-fixing when it occurs because they expect
it to be brought about by a number of explicit agreements among large firms; it is not.
More over those economists who argue that allowing the free market to operate without interference is the
most efficient method of establishing prices have not considered the economies of non socialist countries
other than the United States. These economies employ intentional price-fixing usually in an overt fashion.
Formal price fixing by cartel and informal price fixing by agreements covering the members of an industry
are common place. Were there something peculiarly efficient about the free market and inefficient about
price fixing, the countries that have avoided the first and used the second would have suffered drastically
in their economic development. There is no indication that they have.
Socialist industry also works within a frame work of controlled prices. In early 1970's, the Soviet Union
began to give firms and industries some of the flexibility in adjusting prices that a more informal evolution
has accorded the capitalist system. Economists in the United States have hailed the change as a return to
the free market. But Soviet firms are no more subject to prices established by free market over which they
exercise little influenced than are capitalist firms.
With which of the following statements regarding the behavior of large firms in industrialized societies
would the author be most likely to agree.
A. The directors of large firms are less interested in achieving a predictable level of profit tan in achieving
a large profit.
B. The directors of large firms will strive to reduce the costs of their products.
C. Many directors of large firms believe that the government should establish the prices that will be
charged for products.
D. Many directors of large firms believe that the price charged for products is likely to increase annually.
E. The directors of large firms will continue to anticipate the demand for products
Answer: E
NEW QUESTION: 2
You plan to conduct a test for a multi-tier ASP.NET website using Microsoft Test Manager (MTM). You have created a test plan named QA Release 1.0. You also have created a test setting for the QA Release
1.0 test plan with the Database, Web Client, and Web Server roles.
The QA Release 1.0 test plan must specify that test runs:
Collect specific diagnostic trace information to help analyze bugs that are difficult to reproduce, and
Collect information about which methods of your applications code were used when a test case was
run.
You need to configure the QA Release 1.0 test plan to meet these requirements.
What should you do?
A. Enable and configure the IntelliTrace, ASP.NET Client Proxy for IntelliTrace and Test Impact, and ASP.NET profiler diagnostic data adapter settings.
B. Enable and configure the IntelliTrace, ASP.NET Client Proxy for IntelliTrace and Test Impact diagnostic data adapter settings.
C. Enable and configure the ASP.NET profiler, Code coverage, and IntelliTrace diagnostic data adapter settings.
D. Enable and configure the IntelliTrace, ASP.NET profiler, and Event log diagnostic data adapter settings.
Answer: B
Explanation:
Explanation/Reference:
Test Settings: Data and Diagnostics
* (needed) IntelliTrace : You can configure the diagnostic data adapter for IntelliTrace to collect specific diagnostic trace information to help isolate bugs that are difficult to reproduce
* (needed for Web Client - Web Server traffic) ASP.NET Client Proxy for IntelliTrace and Test Impact: This proxy allows you to collect information about the http calls from a client to a Web server for the IntelliTrace and Test Impact diagnostic data adapters.
* (needed) Test impact : You can collect information about which methods of your applications code were used when a test case was running. This information can be used together with changes to the application code made by developers to determine which tests were impacted by those development changes.
Reference: Specifying Test Settings for Visual Studio Tests
NEW QUESTION: 3
Which of the following is the MOST important use of KRIs?
A. Providing an early warning signal
B. Enabling the documentation and analysis of trends
C. is incorrect. This is not as important as giving early warning. Answer: A is incorrect. This is one of the important functions of KRIs which can help management
to improve but is not as important as giving early warning.
D. Providing an indication of the enterprise's risk appetite and tolerance
E. Providing a backward-looking view on risk events that have occurred
F. Explanation:
Key Risk Indicators are the prime monitoring indicators of the enterprise. KRIs are highly relevant and possess a high probability of predicting or indicating important risk. KRIs help in avoiding excessively large number of risk indicators to manage and report that a large enterprise may have. As KRIs are the indicators of risk, hence its most important function is to effectively give an early warning signal that a high risk is emerging to enable management to take proactive action before the risk actually becomes a loss.
Answer: A
Explanation:
is incorrect. KRIs provide an indication of the enterprise's risk appetite and tolerance
through metric setting, but this is not as important as giving early warning.
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