Which is the best example of a nondiversifiable risk for Stalwart Shoes? A) A project to open a new store in Texas B) A project to open a new factory in Texas C) A project to move into the sock market D) The state of the economy in Texas E) The state of the U.S. […]
Date: September 9th, 2020
The United States is the only country that currently meets the Millennium Goal standard of providing 0.7% of GDP to foreign aid. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
Which of the following is NOT an example of moral hazard in business? A) A bank buys risky mortgage securities because they believe the government will provide a bail-out if the investment performs badly. B) A firm uses venture capital to speculate in the commodity futures market. C) A firm does not hire adequate security […]
Date: September 9th, 2020
More education guarantees a higher income and escaping poverty. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
A perfectly competitive hardware manufacturer has total revenue of $85 million, total variable costs of $45 million, and fixed costs of $10 million. What is the firm’s producer surplus? A) $85 million B) $70 million C) $40 million D) $30 million ANSWER C
Date: September 9th, 2020
Bancroft Pharmaceuticals has a patent on a new medication used to treat high blood pressure, so it is the monopoly seller of this new drug product. The marginal cost of producing one dose of the drug is $10, and the elasticity of demand for the product is -3. What is the profit maximizing monopoly price […]
Date: September 9th, 2020
Suppose all firms have constant marginal costs that are the same for each firm in the short run. In this case, the market level supply curve is ________ and producer surplus equals ________: A) perfectly inelastic, fixed costs B) perfectly inelastic, zero C) perfectly elastic, fixed costs D) perfectly elastic, zero ANSWER D
Date: September 9th, 2020
Of the following endeavors of Happy Home Insurance Company of California, which involves the most nondiversifiable risk? A) Fire insurance B) Home burglary insurance C) Earthquake insurance D) Personal accident insurance E) Home office insurance ANSWER C
Date: September 9th, 2020
A multiplant firm has equated marginal costs at each plant. By doing this A) profits are maximized. B) costs are minimized given the level of output. C) revenues are maximized given the level of output. D) none of the above ANSWER B
Date: September 9th, 2020
Playing the game in Scenario 13.12 by using a maximin strategy would A) not change the equilibrium from the equilibrium of the original game. B) change the equilibrium to (R1,C2 ). C) change the equilibrium to (R2,C1 ) if R moved first. D) change the equilibrium to (R2,C1 ) if C moved first. E) change […]
Date: September 9th, 2020
