Recent Question

European Union labor costs exceed U.S. and British labor costs primarily 1. Companies that reduce their margins on export products in the face of appreciation of their home currency may be motivated by a desire to 2. European Union labor costs exceed U.S. and British labor costs primarily because 3. If Ben Bernanke, Chair of the Federal Reserve Board, begins to tighten monetary policy by raising US interest rates next year, what is the li ...

Other / Other 30 Apr 2016

Which one of the following is largely based on forecasts of macroeconomic The information below applies to the next three questions (1-3) The average returns, standard deviations and betas for three funds are given below along with data for the S&P 500 index. The risk free return during the sample period is 6%. 1. You wish to evaluate the three mutual funds using the Sharpe measure for performance eval ...

Other / Other 30 Apr 2016

Which of the following bonds would have the greatest percentage increase 1. Which of the following statements is correct? a. You hold two bonds, a 10-year, zero-coupon bond and a 10-year bond that pays a 6% annual coupon. The same market rate, 6%, applies to both bonds. If the market rate rises from its current level, the zero coupon bond will experience the larger percentage decline. b. The time to maturity does not affect the cha ...

Other / Other 30 Apr 2016

What types of business can be converted to an LLC 1) Fred wants to start an adult daycare business, but is worried about potential liability. He hires an attorney to incorporate his business, but does not want to keep paying the attorney, so he dismisses the attorney as soon as the incorporation is accomplished. What else must Fred do to make sure he holds on to his protection from personal liability? A. He must buy malpractice insuran ...

Other / Other 30 Apr 2016

Income tax payments are an example of 1. Income tax payments are an example of ____. 2. The Saturn Corporation (once a division of GM) was permanently closed in 2009. What went wrong with Saturn? 3. Recently, the American Medical Association changed its recommendations on the frequency of pap-smear exams for women. The new frequency recommendation was designed to address the family histories of the patients. The optimal frequency sho ...

Other / Other 30 Apr 2016

A change in the level of an economic activity is desirable 1. The net present value of an investment represents A. an index of the desirability of the investment B. the expected contribution of that investment to the goal of shareholder wealth maximization C. the rate of return expected from the investment D. a and b only 2. A change in the level of an economic activity is desirable and should be undertaken as long as the marginal be ...

Other / Other 30 Apr 2016

The marginal rate of technical substitution may be defined as 1. The optimal currency area involves a trade-off of reducing transaction costs but the inability to use changes in exchange rates to help ailing regions. If the US, Canada, and Mexico had one single currency (the Peso-Dollar) we would tend to see all of the following EXCEPT: A. Even more intraregional trade of goods across the three countries. B. Lower transaction costs of ...

Other / Other 30 Apr 2016

The standard deviation is appropriate to compare the risk Question 1 Which of the following will increase (V0), the shareholder wealth maximization model of the firm: V0∙(shares outstanding) = Σ∞t=1 (π t ) / (1+ke)t + Real Option Value. Answer A. Decrease the required rate of return (ke). B. Decrease the stream of profits (πt). C. Decrease the number of periods from ∞ to 10 periods. D. Decrease t ...

Other / Other 30 Apr 2016

The type of economic indicator that can best be used for business forecasting Question 1 The estimated slope coefficient (b) of the regression equation (Ln Y = a + b Ln X) measures the ____ change in Y for a one ____ change in X. Answer a. percentage, unit b. percentage, percent c. unit, unit d. unit, percent e. none of the above Question 2 For studying demand relationships for a proposed new product that no one has ever used ...

Other / Other 30 Apr 2016

The variation in an economic time-series 1. Demand functions in the multiplicative form are most common for all of the following reasons except: 2. Consumer expenditure plans is an example of a forecasting method. Which of the general categories best described this example? 3. The use of quarterly data to develop the forecasting model Yt = a +bYt−1 is an example of which forecasting technique? 4. An example of a time series data ...

Other / Other 30 Apr 2016