An exchange rate is A) the price of one currency in terms of another. B) the monetary value of goods and services exchanged for imports. C) the amount of gold a currency will buy. D) All of the above. ANSWER A
Date: September 9th, 2020
Which of the following indicates when Stage II ends and Stage III begins in the short-run production function? A) when AP = 0 B) when MP = 0 C) when MP = AP D) when MP starts to diminish ANSWER B
Date: September 9th, 2020
If $1,000 is placed in an account earning 8% annually, the balance at the end of seven years will be A) $1,080. B) $1,560. C) $2,000. D) $1,714. ANSWER D
Date: September 9th, 2020
If a currency such as the US$ is traded in a competitive market, a(n) ________ in demand for the US$ ________ the price of the US$ in terms of another currency such as the Japanese Yen (¥). A) increase; lowers B) increase; raises C) decrease; raises D) change; lowers ANSWER B
Date: September 9th, 2020
Stage III of the short-run Production Function is A) the most efficient mix of inputs. B) the least costly level of output. C) where additional units of variable inputs will lead to less output. D) where additional units of variable inputs will lead to more output. ANSWER C
Date: September 9th, 2020
Suppose the estimated fixed cost of Christmas trees business is $7,000 and not sunk. The estimated variable cost for each tree is $20. According to the forecast, the market price for Christmas trees is $25 each and the owner could sell 1000 trees at most each year. In the long run, the owner A) should […]
Date: September 9th, 2020
The following matrix shows the payoffs for an advertising game between Coke and Pepsi. The firms can choose to advertise or to not advertise. Numbers in the matrix represent profits; the first number in each cell is the payoff to Coke. (Numbers in millions.) Coke (rows) / Pepsi (columns) Advertise Don’t Advertise Advertise (10, 10 […]
Date: September 9th, 2020
If a firm finds itself operating in Stage I, it implies that A) variable inputs are extremely expensive. B) it overinvested in fixed capacity. C) it underinvested in fixed capacity. D) fixed inputs are extremely expensive. ANSWER B
Date: September 9th, 2020
A firm that operates in Stage III of the short-run production function A) has too much fixed capacity relative to its variable inputs. B) has too little fixed capacity relative to its variable inputs. C) has greatly overestimated the demand for its output. D) should try to increase the amount of variable input used. […]
Date: September 9th, 2020
The term capital budgeting refers to decisions A) which are made in the short run. B) which concern the spreading of expenditures over a period lasting less than one year. C) where expenditures and receipts for a particular undertaking will continue over a relatively long period of time. D) where a receipt of cash will […]
Date: September 9th, 2020
