Question 14 (0.5 points) In the maturity stage of the industry life cycle: 1) the product has reached full potential. 2) profit margins are narrower. 3) producers are forced to compete on price to a greater extent. 4) 1 and 2 only. 5) 1, 2, and 3. Which of the following are key economic statistics that are used to describe the state of the macroeconomy? I. gross domestic product II. the unemployment rate III. inflation IV. consumer sentiment V. the budget deficit 1) I, II, and V only. 2) I, III, and Vonly. 3) I, II, and III only. 4) I, II, III, and V only. 5) I, II, III, IV, and V. If the economy was going into a recession, an attractive industry to invest in would be the industry. 1) automobile 2) medical services 3) construction 4) 1 and 3 5) 2 and 3 Question 17 (0.5 points) A firm has a higher quick (or acid test) ratio than the industry average, which implies that: 1) the firm has a higher P/E ratio than other firms in the industry. 2) the firm is more likely to avoid insolvency in short run than other firms in the industry. 3) the firm may be less profitable than other firms in the industry. 4) 1 and 2. 5) 2 and 3