Question Details

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 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
e)	a and c only
3.	A change in the level of an economic activity is desirable and should be undertaken as long as the marginal benefits exceed the ____.
a)	marginal returns
b)	total costs
c)	marginal costs
d)	average costs
e)	average benefits
4.	Marginal revenue (MR) is ____ when total revenue is maximized
a)	greater than one
b)	equal to one
c)	less than zero
d)	equal to zero
e)	equal to minus one
5.	The factor(s) which cause(s) a movement along the demand curve include(s):
a.	increase in level of advertising
b.	decrease in price of complementary goods
c.	increase in consumer disposable income
d.	decrease in price of the good demanded
e.	all of the above




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