62.
Which of the following are key economic statistics that are used to describe the state of
the macroeconomy?
I) Gross domestic product
II) The unemployment rate
III) Inflation
IV) Consumer sentiment
V) The budget deficit
63.
An example of a positive demand shock is
64.
An example of a negative demand shock is
65.
During which stage of the industry life cycle would a firm experience stable growth in
sales?
66.
The emerging stock market exhibiting the highest local currency return in 2012 was
67.
Sector rotation
68.
According to Michael Porter, there are five determinants of competition. An example of
_____ is when new entrants to an industry put pressure on prices and profits.
69.
According to Michael Porter, there are five determinants of competition. An example of
_____ is when competitors seek to expand their share of the market.
70.
According to Michael Porter, there are five determinants of competition. An example of
_____ is when the availability limits the prices that can be charged to customers.
71.
According to Michael Porter, there are five determinants of competition. An example of
_____ is when a buyer purchases a large fraction of an industry’s output and can demand
price concessions.
72.
Assume the U.S. government was to decide to increase the budget deficit. This action will
most likely cause __________ to increase.
73.
If interest rates decrease, business investment expenditures are likely to ______ and
consumer durable expenditures are likely to _________.
74.
An example of a defensive industry is
75.
Two firms, C and D, both produce coat hangers. The price of coat hangers is $1.20 each.
Firm C has total fixed costs of $750,000 and variable costs of 30¢ per coat hanger. Firm D
has total fixed costs of $400,000 and variable costs of 50¢ per coat hanger. The corporate
tax rate is 40%. If the economy is strong, each firm will sell 2,000,000 coat hangers. If the
economy enters a recession, each firm will sell 1,400,000 coat hangers.
If the economy enters a recession, the total revenue of firm C will be
76.
Two firms, C and D, both produce coat hangers. The price of coat hangers is $1.20 each.
Firm C has total fixed costs of $750,000 and variable costs of 30¢ per coat hanger. Firm D
has total fixed costs of $400,000 and variable costs of 50¢ per coat hanger. The corporate
tax rate is 40%. If the economy is strong, each firm will sell 2,000,000 coat hangers. If the
economy enters a recession, each firm will sell 1,400,000 coat hangers.
If the economy enters a recession, the total cost of firm C will be
77.
Two firms, C and D, both produce coat hangers. The price of coat hangers is $1.20 each.
Firm C has total fixed costs of $750,000 and variable costs of 30¢ per coat hanger. Firm D
has total fixed costs of $400,000 and variable costs of 50¢ per coat hanger. The corporate
tax rate is 40%. If the economy is strong, each firm will sell 2,000,000 coat hangers. If the
economy enters a recession, each firm will sell 1,400,000 coat hangers.
If the economy enters a recession, the before-tax profit of firm C will be
78.
Two firms, C and D, both produce coat hangers. The price of coat hangers is $1.20 each.
Firm C has total fixed costs of $750,000 and variable costs of 30¢ per coat hanger. Firm D
has total fixed costs of $400,000 and variable costs of 50¢ per coat hanger. The corporate
tax rate is 40%. If the economy is strong, each firm will sell 2,000,000 coat hangers. If the
economy enters a recession, each firm will sell 1,400,000 coat hangers.
If the economy enters a recession, the tax of firm C will be