What is correct here? 26 Which of the following is never negative? 27 If the marginal product of labor is 100 and the price of labor is 10, while the marginal product of capital is 200 and the price of capital is $30, then what should the firm? 28 In a production process, an excessive amount of the variable input relative to the fixed input is being used to produce the desired output. This statement is true for: 29 What method of inventory valuation should be used for economic decision-making problems?
Chapter 17 Macroeconomic and Industry Analysis Multiple Choice Questions 1. A top down analysis of a firm starts with ____________. A. the relative value of the firm B. the absolute value of the firm C. the domestic economy D. the global economy E. the industry outlook A top down analysis of a firm starts with the global economy. Difficulty: Easy 2. An example of a highly cyclical industry is ________.
Highlight statistics that you think would indicate that your country runs a market-oriented economy. Conversely, highlight statistics that would indicate government intervention in your market. Use this data to place your Country on the Economic System continuum document, alongside the rest of your teammates. On your continuum, place the flag of your country in what you think the correct spot is. Include a brief characterization of your economy
------------------------------------------------- JAN 10 Section B Question 4 (b) Evaluate the argument that managers controlling large companies might follow policies which do not necessarily maximise the profits of the owners. 25 marks Kn Economic theory standardly assumes maximising behaviour on the part of economic agents. Consumers are assumed to maximise utility from consumption subject to their limited income, for example, while workers maximise income subject to the constraint of wanting leisure time. It is assumed that firms pursue profit maximisation, although a number of other maximising behaviours are possible in reality such as revenue maximisation or maximising the volume of sales, and these are sometimes thought likely to be pursued by the managers of large firms. It is also possible that managers do not adopt maximising behaviour at all, perhaps “satisficing” in response to shareholder discipline or that the policy of the firm is the result of complex interactions between various stakeholders.
Government legislation B. The product market c. The labor market d. Labor market competitors 6. (p. 195) Which of the following factors do not affect an employer's ability to pay high wages? a. product demand b. degree of competition c. productivity of labor D. All of these affect ability to pay 7. (p. 199) All of the following except ___________ is an important factor in defining a market for compensation purposes.
Remember that supply is a schedule of how many units suppliers are willing to offer at different prices. When costs fall, the supply curve increases or shifts to the right. Since changes in producer costs is not a demand factor, there would be no impact on demand. | | | | Points Received: | 10 of 10 | | Comments: | | | | 2. | Question : | (TCO A) Ceteris paribus, coffee Brand X and coffee Brand A are substitutes in consumption.
Proponents of the notion of a "political business cycle" suggest that: A. The standardized budget is a better indicator of the state of the economy than the actual budget B. Cyclical swings in the economy are produced by the inherent instability found in capitalist economies C. A possible cause of economic fluctuations is due to the use of fiscal policy for political purposes D. There is a tradeoff among goals that tends to make the economic policies of state and local governments procyclical 19. One of the timing problems with fiscal policy is an "operational lag" that occurs between the: A. Beginning of a recession and the time that it is recognized that the event is occurring B.
Which of the following is NOT a major area of study for economists? a. how people make decisions b. how people interact with each other c. how forces and trends affect the overall economy d. how countries choose national leaders ANSWER: d. how countries choose national leaders TYPE: M KEY1: D OBJECTIVE: 1 RANDOM: Y [ix]. The adage, “There is no such thing as a free lunch,” means: a. To get something we like, we usually have to give up another thing we like. b.
See pages 18 – 20 for more on economic growth. Points Received: 2 of 2 Comments: 6. Question : The key economic concept that serves as the basis for the study of economics is: Student Answer: inflation. unemployment. money.
Quiz #1 1. TCO 1) The primary focus of the study of economics is on making the most efficient use of scarce productive resources. 2. (TCO 1) The key economic concept that serves as the basis for the study of economics is Student Answer: scarcity. 3.