D) All of the above. E) None of the above. Answer: ___ 2) As the proportion of labor contracts with wage indexation increases, we would expect that: A) nominal wages will become more sensitive to changes in unemployment. B) a reduction in unemployment will have a smaller effect on inflation. C) the natural rate of unemployment will decrease.
g. Over what range of the variable input usage do decreasing marginal returns exist? When k is greater than 3. h. Over what range of input usage do negative marginal returns exist? When k is greater than 7. * 5. A manager hires labor and rents capital equipment in a very competitive market.
D) none of the above Answer: A Diff: 2 Topic: 13.1 Financial Globalization and Strategy Skill: Recognition 4) Reasons that firms may find themselves with relatively high costs of capital include: A) The firms reside in emerging countries with undeveloped capital markets. B) The firms are too small to easily gain access to their own national securities market. C) The firms are family owned and they choose not to access public markets and lose control of the firm. D) all of the above Answer: D Diff: 2 Topic: 13.1 Financial Globalization and Strategy Skill: Recognition 5) Which of the following is NOT a contributing
Since the hurdle rate is usually the cost of capital, WACC for the company is calculated as below: Cost of debt 5.88% After tax 3.53% D/E 28.21% Company Beta 1.15 Cost of equity 10.95% WACC 9.3% It means that any project that will not return 9.3% will be rejected and anything above 9.3% has a good chance of being accepted. Actually the required rate of return and the systematic risk of cash flows for each project were not equal. Actually the projects with low return has a lower beta and would have a lower hurdle rate and projects with higher return have a higher beta and higher hurdle rate. The application of single hurdle rate will result in rejection of projects which return is higher than the actual hurdle rate and accept projects which return is lower than the actual hurdle rate. In other words, it would lead to false rejects for Telecom services while signaling false accepts for the Product and Systems group.
Reduce inventory c. Cost Management i. Tools to improve cost control ii. Overall inventory turnover 4) LBO to enhance equity returns? LBO reduces in the short term equity returns and, in order to maintain profitability put pressure on the management to achieve operational efficiency. Second it provided tax shield to be used once the principal got reduced.
Freidman argued that there was a natural rate of unemployment and that attempts to reduce unemployment lead to other problems like inflation. Neoliberals thought that inflation undermines the market system because there is lack in faith of money and discourage money economic activity. In order to solve inflation the government needed to control growth in money supplies by cutting public spending and allowing unemployment to rise so the market can solve the problem. The liberal new right regards the state as a realm of coercion and “unfreedom”,
The Keynesian Aggregate Expenditure Model Related to Current American Economics Jonah S. Gruner Macroeconomics 201 UMUC European Campus Dr. Ertl July 1, 2012 The Keynesian Aggregate Expenditure Model Related to Current American Economics Much of today’s news focuses on global economic recession, global economic recovery, bailout spending, employment and our struggle to reach a better economic situation. In Europe and the United States, Keynesian economics has generated a greater interest. This paper attempts to relate current developments in American economics to the Keynesian aggregate expenditure model by responding to the following questions: 1. Who was Keynes and what is his basic aggregate expenditure model? 2. How does Keynes relate gross domestic product (GDP) to aggregate spending?
Microeconomics 201 First Midterm Chapter 1 Introduction: What Is Economics? 1.1 What Is Economics? 1) Economics is best defined as the study of: A) financial decision-making. B) how consumers make purchasing decisions. C) choices made by people faced with scarcity.
They calculated the demand to be 2500 whereas the actual demandwas over 4000. The department was working in silo and had very little or no communicationwith the Marketing department. In a nutshell, they were interested in achieving LocalMaxima rather than achieving Global Optima . Moreover, they maintained an arm’s lengthdistance with vendors rather than considering them as strategic partners.2. Production Department: The production department didn’t provide the requisite data to thematerials management/procurement team.
d. Low inflation rate and high economic growth rate. 2. Economics is the study of: a. how to allocate limited resources to satisfy limited wants. b. how to allocate limited resources to solve unlimited wants. c. methods to eliminate scarcity.