Recent Question

If demand were inelastic, then we should immediately 1. The standard deviation is appropriate to compare the risk between two investments only if 2. The ____ is the ratio of ____ to the ____. 3. Based on risk-return tradeoffs observable in the financial marketplace, which of the following securities would you expect to offer higher expected returns than corporate bonds? 4. If demand were inelastic, then we should immediately: 5. An incre ...

Other / Other 25 May 2016

The factor(s) which cause(s) a movement along the demand curve include 1. To reduce Agency Problems, executive compensation should be designed to: a. create incentives so that managers act like owners of the firm. b. avoid making the executives own shares in the company. c. be an increasing function of the firm's expenses. d. be an increasing function of the sales revenue received by the firm. e. all of the above 2. The net present v ...

Other / Other 25 May 2016

European Union labor costs exceed U.S. and British labor costs primarily because 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 ...

Other / Other 25 May 2016

The closest example of a risk-free security is 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 freq ...

Other / Other 25 May 2016

The primary purpose of the Cobb-Douglas power function is to 1. If the value of the U.S. dollar rises from 1.0 per dollar to 1.3 per dollar, a) imports of automobiles from Germany will decline b) American inflation will increase c) German exports of all traded goods will decline d) American exports to Germany will decrease e) sales by American manufacturers for the export markets will increase. 2. Marginal factor cost is defined ...

Other / Other 25 May 2016

Which of the following is never negative 1. The purchasing power parity hypothesis implies that an increase in inflation in one country relative to another will over a long period of time a) increase exports b) reduce the competitive pressure on prices c) lower the value of the currency in the country with the higher inflation rate d) increase foreign aid e) increase the speculative demand for the currency 2. The optimal currency ar ...

Other / Other 25 May 2016

To reduce Agency Problems, executive compensation should be designed to 1. Economies of Scope refers to situations where per unit costs are: a) Unaffected when two or more products are produced b) Reduced when two or more products are produced c) Increased when two or more products are produced d) Demonstrating constant returns to scale e) Demonstrating decreasing returns to scale 2. Which of the following will increase (V0), the sha ...

Other / Other 25 May 2016

Which of the general categories best described this example 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 ...

Other / Other 25 May 2016

Which of the following barometric indicators would be the most helpful for forecasting future sales 1. Which of the following barometric indicators would be the most helpful for forecasting future sales for an industry? a. lagging economic indicators. b. leading economic indicators. c. coincident economic indicators. d. wishful thinking 2. European Union labor costs exceed U.S. and British labor costs primarily because a. worker p ...

Other / Other 25 May 2016

The Identification Problem in the development of a demand function is a result 1. A price elasticity (ED) of 1.50 indicates that for a ____ increase in price, quantity demanded will ____ by ____. a) one percent; increase; 1.50 units b) one unit; increase; 1.50 units c) one percent; decrease; 1.50 percent d) one unit; decrease; 1.50 percent e) ten percent; increase; fifteen percent 2. The Identification Problem in the developm ...

Other / Other 25 May 2016