QUESTION 2

1. Which of the following is the rule in many states regarding a minor's misrepresentation of his or her age?

   	a.	That if a competent party relies on a misrepresentation in good faith, the minor gives up the right to disaffirm the agreement.
   	b.	That the minor must restore the competent party to that party's precontractual position before obtaining the disaffirmance.
   	c.	That the minor may disaffirm but that the competent party has the right to sue the minor in tort and recover damages for fraud.
   	d.	That misrepresentation does not affect the minor's right to disaffirm the contract.
   	e.	That misrepresentation results in the minor receiving a return of only half the consideration he or she supplied.

1 points   

QUESTION 3

1. When a former minor does not specifically state that he affirms a contract entered into as a minor, but takes some action that is consistent with intent to ratify the contract, which of the following has occurred?

   	a.	Implied ratification
   	b.	Express ratification
   	c.	Express novation
   	d.	Implied novation
   	e.	Continued safety

QUESTION 4

1. A[n] ________ is a false representation of a material fact that is a misstatement of fact that is intentionally made and justifiably relied upon.

   	a.	Negligent misrepresentation
   	b.	Fraudulent misrepresentation
   	c.	Scienter misrepresentation
   	d.	Acknowledged misrepresentation
   	e.	True misrepresentation

5- Gordon, Melinda's long-time attorney, uses his position as her attorney to persuade her to sign over her property to Gordon's best friend Bartholomew. This is undue influence.

True

False

A GoodCredit company issued a bond with par value of $1,000.00, a time to maturity of 15.00 years, and a coupon rate of 7.90%. The bond pays interest annually. If the current market price is $790.00, what will be the approximate capital gain on this bond over the next year if its yield to maturity remains unchanged? NOTE: Capital gain is change in bond price. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Question 1
Seven baseballs are randomly selected from the production line to see if their stitching is straight. Over time, the company has found that 89.4% of all their baseballs have straight stitching. If exactly five of the seven have straight stitching, should the company stop the production line?
   Yes, the probability of five or less having straight stitching is unusual
   No, the probability of five or less having straight stitching is not unusual
   No, the probability of exactly five have straight stitching is not unusual
   Yes, the probability of exactly five having straight stitching is unusual
  
Question 2

A soup company puts 12 ounces of soup in each can. The company has determined that 97% of cans have the correct amount. Which of the following describes a binomial experiment that would determine the probability that a case of 36 cans has all cans that are properly filled?
   n=36, p=0.97, x=36
   n=36, p=0.97, x=1
   n=12, p=0.36, x=97
   n=12, p=0.97, x=0

Question 3

A supplier must create metal rods that are 2.3 inches width to fit into the next step of production. Can a binomial experiment be used to determine the probability that the rods are the correct width or an incorrect width?
   No, as the probability of being about right could be different for each rod selected
   Yes, all production line quality questions are answered with binomial experiments
   No, as there are three possible outcomes, rather than two possible outcomes
   Yes, as each rod measured would have two outcomes: correct or incorrect
  
Question 4

In a box of 12 pens, there is one that does not work. Employees take pens as needed. The pens are returned once employees are done with them. You are the 5th employee to take a pen. Is this a binomial experiment?
   No, binomial does not include systematic selection such as “fifth”
   No, the probability of getting the broken pen changes as there is no replacement
   Yes, you are finding the probability of exactly 5 not being broken
   Yes, with replacement, the probability of getting the one that does not work is the same
  
Question 5

Sixty-eight percent of products come off the line within product specifications. Your quality control department selects 15 products randomly from the line each hour. Looking at the binomial distribution, if fewer than how many are within specifications would require that the production line be shut down (unusual) and repaired?
   Fewer than 8
   Fewer than 9
   Fewer than 11
   Fewer than 10
  
Question 6

The probability of a potential employee passing a drug test is 86%. If you selected 12 potential employees and gave them a drug test, how many would you expect to pass the test?
   8 employees
   9 employees
   10 employees
   11 employees
  
Question 7

The probability of a potential employee passing a training course is 86%. If you selected 15 potential employees and gave them the training course, what is the probability that 12 or less will pass the test?
   0.862
   0.148
   0.100
   0.852
  
Question 8
Off the production line, there is a 3.7% chance that a candle is defective. If the company selected 45 candles off the line, what is the probability that fewer than 3 would be defective?
   0.975
   0.916
   0.768
   0.037

1.) What the most important ways that integrated marketing communications (IMC) builds loyalty relationships?

A. by helping to reinforce the choices suggested by each communications option.
B. by persuading consumers that they should build a relationship with the organization.
C. by giving loyalty coupons to repeat users.

2.) The advantages of advertising over personal selling include:

A. greater opportunity to tailor the message to the interested prospect.

B. easier to keep the consumer from “tuning out” the message.
C. more freedom to try persuasive techniques on the prospect.

D. lower cost to expose a thousand prospects to the message

3.) Personal selling likely to be MOST important when:
A. the distribution network is well established (as opposed to poorly established).
B. prices are negotiable (instead of fixed list prices) because of industry competition.
C. the product is simple (as opposed to complex), requiring no demonstration.
D. the target market is composed of thousands of small customers (as opposed to 50 large customers).

4.) Which is WRONG regarding sales promotions:
A. sales promotions have been shown to build long-term sales volume for products.
B. trade promotions are used to encourage channel cooperation with manufacturers.
C. sales promotions can be effective in protecting established brands from new entrants.
D. sales promotions for new products are useful in gaining channel acceptance of the item.

Explain Aristotle’s 4 causes.

How can duration be used to determine a rough measure of the percentage change in the price of a bond as a result of interest rate changes?

Assume that the economy is initially at the natural level of output. A permanent increase in taxes will cause which of the following?

Question 7 options:

Which of the following events will cause a reduction in the aggregate price level?

Question 4 options:

1) In the past 3 weeks there have been considerable fiscal and monetary policy initiatives. Give an example of one of each of these. Indicate what was done, why it should have an effect on the economy, and some possible problems that may lead to is not having as great an effect as ‘anticipated’.

2) We are seeing massive unemployment numbers in recent weeks. Provide your thoughts on what type of unemployment we’re seeing, and whether you feel the ‘bads’ associated with unemployment will be felt sooner or later based on other factors you’ve seen/heard/ and learned about. Be sure to include those factors and the effects you think they will have on the unemployed in terms of making it better or worse. (again, you’re going to be graded on how well you support your thoughts using theories and information learned in class, not necessarily on whether you are ‘actually correct’)

Assume you have been designated as a building commissioner for a high-performance green building. Explain what steps you would take to commission the building (a minimum of five steps). Explain the benefits of completing each step and how you would go about completing each step.

Suppose the United States could import footwear from Thailand at the price of $20 per pair or from Mexico at $24 per pair. The domestic price of footwear in the United States is $35. Suppose prior to NAFTA, the U.S. imposed a 50% tariff on all footwear entering the country. Suppose the US demand for footwear is given by Q = 100 – 2P. Assume US producers face a constant MC = $35. What is the welfare effect of joining the NAFTA for the US if doing so requires eliminating the tariff on Mexican made footwear?

What is the welfare effect in terms of areas on the supply and demand graph; that show consumer surplus, government revenue AND loss to producers Graphically, what is the welfare effect for the U.S.?

16.) What is the long-run effect on potential output (Y_f) of a temporary favorable supply shock (A↑)? Up, Down, or Same?

What is the long-run effect on the Price level (P) of a temporary favorable supply shock (A↑)? Up, Down, or Same?

The marginal propensity to consumer is the fraction of one’s overall income spent on consumption. True or False?

An exogenous (or autonomous) increase in some type of spending (e.g., a rise in government purchases) will, in the short-run, cause a larger rise in GDP due to the multiplier effect (e.g., rounds of “respending” that result from the original increase). True or False?