Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes?
In: Accounting
Which one of the following is not a characteristic that reduces the cost of a single currency?
options:
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A high degree of labour mobility among the countries of the common currency area |
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A high degree of capital mobility among the countries of the common currency area |
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Synchronized economic cycles in the countries of the common currency area |
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A high degree of trade integration among the countries of the common currency area |
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None of the characteristics described in these answers – they are all characteristics that reduce the cost of a single currency |
Which of the following people or firms would be pleased by a depreciation of the British pound?
options:
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All the people and firms mentioned in the below answers |
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A French exporter of wine to the UK |
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An American tourist visiting London |
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A UK importer of French wine |
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A UK company that wishes to expand abroad by building a factory in Poland |
In open economies
options:
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as in a closed economy, saving (S) and investment (I) are not necessarily equal |
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saving (S) and investment (I) are not necessarily equal as they are in a closed economy |
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investment always refers to the domestic stock market |
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saving (S) and investment (I) are necessarily equal |
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none of the above |
The CA is equal
options:
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Y + (C - I – G) |
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Y - (C + I – G) |
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Y + (C +I + G) |
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Y - (C - I + G) |
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None of the above |
Question 10 (1 point)
Saved
One argument favoring a fixed-exchange-rate system is that it
options:
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allows monetary policy to be used for stabilizing output and prices |
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reduces exchange-rate uncertainty, thereby promoting more international trade |
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leads to excessive growth of the money supply |
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requires no actions on the part of the central bank to implement |
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none of the above |
How does the Life-Cycle Hypothesis resolve the puzzle of the Kuznet data?
options:
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By assuming that income shows a life-cycle variation, the Life-Cycle Hypothesis is able to explain why short term MPC falls with income, but long-term APC is constant. |
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By assuming that income is low in the early years and reaches a peak in late middle age and declines on retirement. |
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By smoothing consumption over a lifetime. |
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All of the above |
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None of the above |
In the Mundell-Fleming model with fixed exchange rates, attempts by the central bank to decrease the money supply:
options:
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Lead to a lower equilibrium level of income |
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Lead to a higher equilibrium level of income |
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Must be abandoned in order to maintain the fixed exchange rate |
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Must be offset by expansionary fiscal policy |
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None of the above |
Which of the following statements about trade policy is true?
options:
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A country's trade policy has no impact on the size of its trade balance |
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A restrictive import quota decreases a country's net exports |
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A restrictive import quota increases a country's net exports |
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An abolition of a restrictive import quota increases a country's net exports |
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None of the above |
In the Mundell-Fleming model with fixed exchange rates, attempts by the central bank to decrease the money supply:
options:
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Lead to a lower equilibrium level of income |
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Lead to a higher equilibrium level of income |
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Must be abandoned in order to maintain the fixed exchange rate |
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Must be offset by expansionary fiscal policy |
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None of the above |
The Taylor rule shows combinations of _______ and ________ which characterize the ________ set by the Central Bank.
options:
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interest rates; the real money supply; monetary targeting |
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inflation; interest rates; inflation targeting |
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real GDP; interest rates; fiscal policy |
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inflation; real GDP; monetary policy |
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None of the above |
If two countries, A and B, have separate currencies and there is a shift in consumer preferences away from the goods of country A and towards those of country B, then
options:
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there will be an increase in inflation in country A |
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the foreign exchange value of country A's currency is likely to rise, thus making country A's goods relatively more expensive and worsening the reduction in aggregate demand in country A |
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the foreign exchange value of country A's currency is likely to fall, thus making country A's goods relatively cheaper and offsetting the reduction in aggregate demand in country A |
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there will be a fall in aggregate demand in country B |
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None of the above |
In: Economics
Show with isoquant analysis the effect on the cost minimized output if:
a. Due to concerns that firms are automating too much, the government has decided to impose a tax on capital equipment to get firms to replace some capital with additional workers.
b. A period of prolonged inflation raises the price level of all inputs in society (you can assume the firm will still spend the same amount of money)
c. Minimum wage in society rises (you can assume this firm hires minimum wage employees), however to prevent growing unemployment, the government requires all firms to employ the same number of workers before and after the wage change.
d. To take advantage of good economic situations, firms have increased their production budget.
In: Economics
Rymore Company has provided the following:
July | August | |
Sales in Units | 1,500 | 1,600 |
Cost A | $35,000 | $36,000 |
Cost B | $16,000 | $16,000 |
Cost C | $67,500 | $72,000 |
Which of the following classifications best describes the behaviour of Cost A?
Select one:
a. Mixed.
b. Variable.
c. Fixed.
d. Opportunity cost.
In: Accounting
Which of the following statements about the cost of capital is CORRECT ?
Select one:
a. Both the cost of debt and equity financing will decrease when a firm expands into a risky new area.
b. Both the cost of debt and equity financing will decrease when a nuclear plant company encounters a ban on nuclear power generation in certain states.
c. The WACC of a firm will decrease when investors become more risk averse.
d. Both the cost of debt and equity financing will decrease when a firm increases its debt/asset ratio.
e. Both the cost of debt and equity financing will increase when the Federal Reserve tightens credit.
In: Finance
Euclid acquires a 7-year class asset on May 9, 2018 for $80,000. Euclid does not elect immediate expensing under § 179- She does not claim any available additional first-year depreciation. Calculate Euclid’s cost recovery deduction for 2018 and 2019.
In: Accounting
Hamlet acquires a 7-year class asset on November 23, 2018, for $100,000. Hamlet does not elect immediate expensing under § 179- He does not claim any available additional first-year depreciation. Calculate Hamlet’s cost recovery deductions for 2018 and 2019.
In: Accounting
What do you understand by Cost of Production in Economics?
In: Economics
1. If we know that a bond has a cost of $500 and that it will return $800 in 12 years, what is the interest rate, assuming that it is compounded annually?
2. XYZ corporation earnings per share were $2.78, and its growth rate was 9.5% per year for 10 years. At that rate, how long would it take for its earnings per share to double?
3. If you deposit $500 at the end of each year for 10 years and earn 8% per year, how much would you have at the end of 10 years?
4. If you invest $3,000 per year beginning at age 20, and continue doing this until you are 75 years old, and earn 9% interest, compounded annually, how much would you have at age 75?
5. If you must have $25,000 in 10 years, but you can contribute only $2,000 per year, what rate of return must you earn to reach your goal?
In: Finance
Which of the following is a consideration for the design of a
cost management system?
a. cost system should have a decision focus
b. different cost is used for different purposes
c. cost information for managerial purposes must meet the
cost-benefit test
d. all of the above
In: Accounting