Archives: Quiz
Economics Chapter 17 Fixed Exchange Rate Regimes3 Under
12 15) How does an increase in inflation affect the nominal exchange rate? Answer: Higher inflation causes a real appreciation. As domestic goods become more expensive relative to foreign goods, net exports decline. Since, in the long run, the nominal […]
Finance Chapter 16 Hernandez Corporation Expects Have The Following
CHAPTER 16—CAPITAL STRUCTURE DECISIONS 1. Different borrowers have different risks of bankruptcy, and bankruptcy is costly to lenders. Therefore, lenders charge higher rates to borrowers judged to be more at risk of going bankrupt. a. True b. False ANSWER: True […]
Economics Chapter 11 Which The Following Example Permanent Resource Price
Name: Class: Date: Chapter 11: Resource Markets True / False 1. An increase in the demand for shoemakers will increase the demand for shoes. a. True b. False ANSWER: False 2. An increase in the price of a resource will […]
Economics Chapter 17 Suppose the nominal exchange rate
Copyright © 2015 Pearson Education, Inc. Macroeconomics: Policy and Practice, 2e (Mishkin) Chapter 17 Exchange Rates and International Economic Policy 17.1 Foreign Exchange Market and Exchange Rates 1) The relative price of one currency in terms of another is known […]
Finance Chapter 15 what will be its total dividend payment
CHAPTER 15—DISTRIBUTIONS TO SHAREHOLDERS: DIVIDENDS AND REPURCHASES that is 30% debt and 70% equity. The company forecasts that its net income this year will be $800,000. If the company follows a residual dividend policy, what will be its total dividend […]
Economics Chapter 10 Bubba’s Baby Boutique is a monopolistically competitive
Name: Class: Date: Chapter 10: Monopolistic Competition and Oligopoly c. earn no economic profit in the long run. d. take advantage of economies of scope. e. earn no economic profit in the short run. ANSWER: c 78. Bubba’s Baby Boutique […]
Economics Chapter 16 The tax multiplier is most likely to be larger than the expenditure
Copyright © 2015 Pearson Education, Inc. 3) A(n) ________ in aggregate demand will result from a decrease in ________. A) decrease; inflation B) increase; taxes C) increase; the budget deficit D) increase; government purchases Answer: B Topic: 16.5 Fiscal Policy […]
Finance Chapter 15 The optimal distribution policy strikes that balance
CHAPTER 15—DISTRIBUTIONS TO SHAREHOLDERS: DIVIDENDS AND REPURCHASES 1. The optimal distribution policy strikes that balance between current dividends and capital gains that maximizes the firm’s stock price. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: […]
Economics Chapter 10 Due The Ease Entry New Firms
Name: Class: Date: Chapter 10: Monopolistic Competition and Oligopoly True / False 1. Firms may easily enter a monopolistically competitive market. a. True b. False ANSWER: True 2. Product differentiation helps explain the slope of the demand curve facing a […]
Economics Chapter 16 Sovereign Debt Crises 2 Sovereign Debt
Copyright © 2015 Pearson Education, Inc. Macroeconomics: Policy and Practice, 2e (Mishkin) Chapter 16 Fiscal Policy and the Government Budget 16.1 The Government Budget 1) Federal government outlays include ________. A) transfer payments, grants to states, interest payments on the […]
Finance Chapter 14 Real options exist when managers have the
CHAPTER 14—REAL OPTIONS 1. Real options exist when managers have the opportunity, after a project has been implemented, to make operating changes in response to changed conditions that modify the project’s cash flows. a. True b. False ANSWER: True POINTS: […]
Economics Chapter 9 If a monopolist that does not practice price
Name: Class: Date: Chapter 09: Monopoly a. e × f b. d × f c. c × g d. a × f e. b × g ANSWER: b 107. If a monopolist that does not practice price discrimination is operating […]
Economics Chapter 15 Financial institutions that cut back on their lending
Answer: A Topic: 15.1 Asymmetric Information and Financial Crises Answer: B Topic: 15.1 Asymmetric Information and Financial Crises AACSB: Analytical Thinking Copyright © 2015 Pearson Education, Inc. 1 Answer: B Topic: 15.1 Asymmetric Information and Financial Crises AACSB: Analytical Thinking […]
Finance Chapter 13 Kasper Film Co. is selling off some old equipment
CHAPTER 13—CASH FLOW ESTIMATION AND RISK ANALYSIS Cengage Learning Testing, Powered by Cognero Page 34 68. DeVault Services recently hired you as a consultant to help with its capital budgeting process. The company is considering a new project whose data […]
Economics Chapter 9 Which of the following conditions must be true
Name: Class: Date: Chapter 09: Monopoly level. In order to maximize profit it should: a. raise price and lower output. b. lower both price and output. c. raise both price and output. d. lower price and raise output. e. lower […]
Economics Chapter 14 Information Challenges And The Financial
Answer: B Topic: 14.1 The Role of the Financial System Answer: C Topic: 14.1 The Role of the Financial System Answer: C Topic: 14.1 The Role of the Financial System Copyright © 2015 Pearson Education, Inc. 1 Answer: A Topic: […]
Finance Chapter 13 a company is considering a proposed new plant
CHAPTER 13—CASH FLOW ESTIMATION AND RISK ANALYSIS 48. Which one of the following would NOT result in incremental cash flows and thus should NOT be included in the capital budgeting analysis for a new product? a. Revenues from an existing […]
Economics Chapter 9 Suppose Monopolist Must Choose Between Two Points
Name: Class: Date: Chapter 09: Monopoly True / False 1. Anything that prevents new firms from competing on an equal basis with existing firms in an industry is called a barrier to entry. a. True b. False ANSWER: True 2. […]
Economics Chapter 13 Declining Inflation Lowers The Real interest Rate Movement
Copyright © 2015 Pearson Education, Inc. 15) In the figure above, assume that output is $10.5 trillion, while potential output is $12 trillion. Suppose that a combination of fiscal stimulus and recovery of consumer and business confidence shifts the IS […]
Finance Chapter 13 Because of improvements in forecasting techniques
CHAPTER 13—CASH FLOW ESTIMATION AND RISK ANALYSIS 1. Because of improvements in forecasting techniques, estimating the cash flows associated with a project has become the easiest step in the capital budgeting process. a. True b. False ANSWER: False POINTS: 1 […]
Economics Chapter 8 Each Firm Has Access Perfect Information c Goods
Name: Class: Date: Chapter 08: Perfect Competition b. $4,000 c. $5,200 d. $5,600 e. $6,000 ANSWER: d 77. The following figure shows the demand and the cost curves of a perfectly competitive firm. Total cost at the profit- maximizing output […]
Economics Chapter 13 Atopic 132 The Relationship Between Stabilizing Inflation
Copyright © 2015 Pearson Education, Inc. Macroeconomics: Policy and Practice, 2e (Mishkin) Chapter 13 Macroeconomic Policy and Aggregate Demand and Supply Analysis 13.1 The Objectives of Macroeconomic Policy 1) Which of the following is a primary objective of macroeconomic policy? […]
Finance Chapter 12 Worthington Inc. is considering a project that has
CHAPTER 12—CAPITAL BUDGETING: DECISION RULES TOPICS: Payback KEYWORDS: Bloom’s: Application OTHER: TYPE: Multiple Choice: Problem 83. Worthington Inc. is considering a project that has the following cash flow data. What is the project’s payback? Year 0 1 2 3 Cash […]
Economics Chapter 8 If a perfectly competitive firm raises its price
Name: Class: Date: Chapter 08: Perfect Competition True / False 1. An industry consists of all firms that supply output to a particular market. a. True b. False ANSWER: True 2. If a perfectly competitive firm raises its price, its […]
Economics Chapter 12 The value of corporate bonds declined.
16 9) By the time Paul Volcker took office as the new Federal Reserve chairman in 1979, both the inflation and unemployment rates were higher than during most of the 1950s, 60s and early 70s. The Federal Reserve implemented an […]
Finance Chapter 12 Which project’s NPV is more sensitive to changes
CHAPTER 12—CAPITAL BUDGETING: DECISION RULES Which of the following statements is CORRECT? a. More of Project B’s cash flows occur in the later years. b. We must have information on the cost of capital in order to determine which project […]
Economics Chapter 7 Average Variable Costs Minimum Point d Marginal Cost
Name: Class: Date: Chapter 07: Production and Cost in the Firm 4 36 12 5 42 6 6 46 4 a. second b. third c. fourth d. fifth e. sixth ANSWER: d 87. When diminishing marginal returns set in, total […]
Economics Chapter 12 Equilibrium Aggregate Demand And Supply
Copyright © 2015 Pearson Education, Inc. Macroeconomics: Policy and Practice, 2e (Mishkin) Chapter 12 The Aggregate Demand and Supply Model 12.1 Recap of the Aggregate Demand and Supply Curves 1) Which equation is a plausible aggregate demand curve? A) π […]
Finance Chapter 12 Correct a One Defect The Irr Method Versus
CHAPTER 12—CAPITAL BUDGETING: DECISION RULES 1. A firm should never accept a project if its acceptance would lead to an increase in the firm’s cost of capital (its WACC). a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Difficulty: Easy […]
Economics Chapter 11 Which of the following never assumes, either implicitly
Copyright © 2015 Pearson Education, Inc. 11.2 The Aggregate Supply Curve 1) In the long run ________. A) the amount of output an economy can produce is determined by real variables like capital, labor and technological advances B) aggregate supply […]
Economics Chapter 7 Suppose Ben Buys Out Jerrys Ownership Firm
Name: Class: Date: Chapter 07: Production and Cost in the Firm True / False 1. Implicit costs involve direct cash payments for the use of a resource. a. True b. False ANSWER: False 2. All other things constant, higher implicit […]
Finance Chapter 11 You were recently hired by Garrett Design
CHAPTER 11—DETERMINING THE COST OF CAPITAL Cengage Learning Testing, Powered by Cognero Page 36 76. Trahern Baking Co. common stock sells for $32.50 per share. It expects to earn $3.50 per share during the current year, its expected dividend payout […]
Economics Chapter 11 In the 1960s, the Phillips curve was
Copyright © 2015 Pearson Education, Inc. Macroeconomics: Policy and Practice, 2e (Mishkin) Chapter 11 Aggregate Supply and the Phillips Curve 11.1 The Phillips Curve 1) The idea behind the Phillips curve is that ________. A) tight labor markets lead to […]
Economics Chapter 6 If he thinks his last dollar spent on playing golf
Name: Class: Date: Chapter 06: Consumer Choice and Demand e. marginal utility of ice cream is negative ANSWER: c 85. Arnold is a utility-maximizing consumer. If he thinks his last dollar spent on playing golf yields less satisfaction than the […]
Finance Chapter 11 Retained earnings that were generated in the past
CHAPTER 11—DETERMINING THE COST OF CAPITAL DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: INTE.GENE.16.70 – LO: 11-8 NATIONAL STANDARDS: United States – BUSPROG: Analytic STATE STANDARDS: United States – AK – DISC: Capital budgeting and cost – DISC: Capital budgeting and cost […]
Economics Chapter 10 topic 104 The Money Market And Interest
Copyright © 2015 Pearson Education, Inc. 13) If government cuts taxes ________. A) after tax income should increase shifting AD to the left to a lower equilibrium level of output B) after tax income should increase shifting AD to the […]
Economics Chapter 6 Total Utility Can Increased Purchasing Little
Name: Class: Date: Chapter 06: Consumer Choice and Demand True / False 1. Different people may have different tastes, but their tastes normally do not change rapidly over time. a. True b. False ANSWER: True 2. Marginal utility can be […]
Finance Chapter 11 The cost of preferred stock to a firm must be
CHAPTER 11—DETERMINING THE COST OF CAPITAL 1. “Capital” is sometimes defined as funds supplied to a firm by investors. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: INTE.GENE.16.69 – LO: 11-1 NATIONAL STANDARDS: United States […]
Economics Chapter 10 raising interest rates and shifting the MP curve to the right
Copyright © 2015 Pearson Education, Inc. Macroeconomics: Policy and Practice, 2e (Mishkin) Chapter 10 Monetary Policy and Aggregate Demand 10.1 The Federal Reserve and Monetary Policy 1) When the Federal Reserve ________. A) drains liquidity, the federal funds rate falls […]
Economics Chapter 5 One Determinant The Price Elasticity Supply Isa
Name: Class: Date: Chapter 05: Elasticity of Demand and Supply a. Demand is elastic. b. Demand is inelastic. c. Demand is unit elastic. d. Demand is perfectly inelastic. e. Demand is perfectly elastic. ANSWER: c 82. Figure 5.5 shows the […]
Finance Chapter 10 A poison pill is also known as a corporate restructuring
CHAPTER 10—CORPORATE GOVERNANCE 1. Two important issues in corporate governance are (1) the rules that cover the board’s ability to fire the CEO and (2) the rules that cover the CEO’s ability to remove members of the board. a. True […]
Economics Chapter 9 Decrease Autonomous Consumption A
Copyright © 2015 Pearson Education, Inc. 19) On the graph above, the labeled point at which investment — planned plus unplanned — is highest is point ________. A) A B) B C) G D) H E) not inferable from the […]
Economics Chapter 5 Elasticity rises as price falls along a linear
Name: Class: Date: Chapter 05: Elasticity of Demand and Supply True / False 1. If demand is inelastic, the percentage change in price is greater than the resulting percentage change in quantity demanded. a. True b. False ANSWER: True 2. […]
Finance Chapter 9 Although a forecasted income statement may help
CHAPTER 9—CORPORATE VALUATION AND FINANCIAL PLANNING b. If a firm retains all of its earnings, then it cannot require any additional funds to support sales growth. c. Additional funds needed (AFN) are typically raised using a combination of notes payable, […]
Economics Chapter 9 Consumption expenditure is 15,000, government purchases
Copyright © 2015 Pearson Education, Inc. Macroeconomics: Policy and Practice, 2e (Mishkin) Chapter 9 The IS Curve 9.1 Planned Expenditure 1) Actual expenditure is to planned expenditure as ________ is to ________. A) desire; accomplishment B) aggregate demand; aggregate supply […]
Economics Chapter 4 Which of the following is likely to shift the market
Name: Class: Date: Chapter 04: Demand, Supply, and Markets a. increase the supply of corn. b. increase the supply of soybeans. c. decrease the supply of soybeans. d. decrease the supply of corn. e. decrease the demand for soybeans. ANSWER: […]
Finance Chapter 9 Which The Following Statements Correct Suppose
CHAPTER 9—CORPORATE VALUATION AND FINANCIAL PLANNING 1. As a firm’s sales grow, its current assets also tend to increase. For instance, as sales increase, the firm’s inventories generally increase, and purchases of inventories result in more accounts payable. Thus, spontaneous […]
Economics Chapter 8 Federal Reserve Systeme None The Above answer Atopic
Answer: C Topic: 8.1 Business Cycle Basics Answer: D Topic: 8.1 Business Cycle Basics Copyright © 2015 Pearson Education, Inc. E) none of the above Answer: B Topic: 8.1 Business Cycle Basics 1 Macroeconomics: Policy and Practice, 2e (Mishkin) Chapter […]
Economics Chapter 4 Supplement L Sugar And Honey Are Viewed Substitutes For
Name: Class: Date: Chapter 04: Demand, Supply, and Markets True / False 1. The impact of a $200 increase in income on quantity of housing demanded would be called an income effect. a. True b. False ANSWER: False 2. The […]
Finance Chapter 8 What The Current Price The Common Stock a
CHAPTER 8—BASIC STOCK VALUATION LEARNING OBJECTIVES: INTE.GENE.16.59 – LO: 8-13 NATIONAL STANDARDS: United States – BUSPROG: Analytic STATE STANDARDS: United States – AK – DISC: Stocks and Bonds LOCAL STANDARDS: United States – OH – Default City – TBA TOPICS: […]