ECO 550 week 8

The _____ clause in an insurance policy relieves the insurer
of responsibility to pay for policyholder_s losses below a
pre-specified
amount.

Which of the following risks will always be insured in a
business?

Which of the following actions can prevent migration of
individuals from one health insurance policy to another?

An individual will be considered risk neutral if:

Which of the following practices of insurers deter moral
hazard?

Which of the following is an example of a moral hazard?

______ provisions in an insurance policy stipulate that it
will pay only a certain percentage of losses claimed by the
insured.

Which of the following can be a signal of product quality to
customers?

An insured person_s incentive to behave in ways that raise
the probability of a claim is known as:

The effects of asymmetric information in the car market can
be weakened by:

Which of the following is an example of asymmetric
information?

If a purchase contract allows a buyer to accept less than a
specified maximum “take” each month, buying a _____ would allow
the
seller to resell the excess at a _____ price.

Which of the following were discovered in a Federal Trade
Commission Study of 8,000 new and used Corvettes sold on eBay
between 2001 and
2003?

Which of the following theories states that people who are
highly risk-averse are less likely to engage in high-risk
activities?

An outside organization trying to gain control of a
corporation offers a _____ by announcing its intent to purchase up
to a certain
number of the target’s shares at a premium over their market
price.

In business organizations, the specialization of workers and
their assignments to different tasks is called:

A _____ generally has less understanding of the firm than a
manager and has little knowledge that is likely to improve the
quality of the
manager_s choices.

_____ have no decision-making powers but can lose no more
than what they have invested.

A sole proprietorship is characterized by:

_____ are legal and contractual mechanism[s] for creating
and operating a business for profit, using capital from investors
that will be
managed on their behalf by directors and officers.

When a single individual performs all the steps involved in
the production process he/she incurs:

Which of the following properties is common to a partnership
business?

Which of the following _shareholder rights_ plan when
implemented provides all shareholders other than outsiders the
right to
purchase additional shares at a discount?

_____ is a property which distinguishes corporations from
proprietorships and partnerships.

According to the theory of propitious selection:

According to the theory of propitious selection:

ÿ
ÿ

risk-neutral people are more likely to opt for insurance
coverage.

ÿ
ÿ

risk-averse people are more likely to opt for insurance
coverage.

ÿ
ÿ

high-risk people submit large claims for insurance coverage.

ÿ
ÿ

high-risk people submit smaller claims for insurance
coverage.

Which of the following accounts are involved in the closing entries when a merchandising company

Which of the following accounts are involved in the closing
entries when a merchandising company uses the perpetual inventory
system?
a)ÿÿÿÿÿ Operating Expenses, Sales
Revenue, and Gross Profit
b)ÿÿÿÿÿ Operating Income and Cost of
Goods Sold
c)ÿÿÿÿÿ Gross Profit, Sales Returns and
Allowances, and Sales Discounts
d)ÿÿÿÿÿ Cost of Goods Sold, Sales
Returns and Allowances, and Sales Discounts

Explain the most important characteristic in perfect competition, monopolistic competition, oligopoly, and monopolies

Explain the most important characteristic in perfect
competition, monopolistic competition, oligopoly, and monopolies
and relate the characteristic to how these firms can make profits
in the short run. In your analysis, make sure to relate an example
for each of the market structures listed and how it relates to the
particular characteristics.

C11V : Macroeconomics

C11V : Macroeconomics
1-Each of the following were elements of the New Deal EXCEPT:
relief, recovery, and reform.

a massive employment program.

unemployment insurance and bank deposit insurance.

a balanced budget.

2-John Maynard Keynes noted that:
we could print all the money we want and still have scarcity.

“to secure the greatest amount of pleasure with the least possible
outlay should be the aim of all economic effort.”

the general notion that scarcity is due to not having enough money
is an illusion.

Both a and c

3-How does a decrease in supply affect equilibrium price and
quantity?
A decrease in supply leads to a lower equilibrium price and a lower
equilibrium quantity.

A decrease in supply leads to a lower equilibrium price and a
higher equilibrium quantity.

A decrease in supply leads to a higher equilibrium price and a
lower equilibrium quantity.

A decrease in supply leads to a higher equilibrium price and a
higher equilibrium quantity.

4-In general, __________ by unanticipated inflation.
creditors and debtors are both helped

creditors and debtors are both hurt

creditors are helped and debtors are hurt

creditors are hurt and debtors are helped

5-Each of the following is an indirect tax EXCEPT the __________
tax.
gasoline

telephone

corporate income

excise

6-Say’s law:
was a basic pillar of classical economics.

was a basic pillar of Keynesian economics.

was formulated during the Great Depression.

proves that we can never have full employment.

7-Barter transactions:
involve directly exchanging goods for other goods.

can occur without the “double coincidence of wants.”

are less costly than transactions involving money.

involve the use of money as a medium of exchange.

8-cross saving is the total of __________ saving.
personal and business

personal and government

business and government

personal, business, and government

9-Lorenz curves tell us about the:
absolute distribution of income.

relative distribution of income.

incidence of malnutrition.

poverty line.

10-Which statement is TRUE?
The U.S. is both the world’s leading creditor nation and the
leading debtor nation.

The U.S. is neither the world’s leading creditor nation nor the
world’s leading debtor nation.

The U.S. is the world’s leading creditor nation and not the world’s
leading debtor nation.

The U.S. is the world’s leading debtor nation and not the world’s
leading creditor nation.

Required:Complete the assignment using

Required: Complete the assignment using the formulas embedded in
Microsoft Excel and/or a financial calculator. Include an Excel
document that shows your calculations. 1. Future Value. What is the
future value of a. $550 invested for 5 years at 15 percent
compounded annually? b. $650 invested for 15 years at 14 percent
compounded annually? 2. Present Value. What is the present value of
a. $453 to be received 8 years from now at a 14 percent discount
rate? b. $1200 to be received 7 years from now at a 12 percent
discount rate? 3. Future Value of an Annuity. What is the future
value of a. $1321 a year for 13 years at 13 percent compounded
annually? b. $867 a year for 10 years at 13 percent compounded
annually? 4. Present Value of an Annuity. What is the present value
of a. $487 a year for 5 years at a 9 percent discount rate? b. $798
a year for 13 years at a 11 percent discount rate? 5. Annuity. How
many years will it take for a payment of a. $590 to grow to 9090.91
at a compound rate of 14 percent? b. $900 to grow to future value
of 10,586.21 at a compound rate of 14 percent? 6. Mortgage. (Hint:
P/Y=12) What is the payoff on a 30 year, 7% original mortgage of a.
$550,552 with a payment of 3,744.50 with 12 years remaining? b.
$190788 with a payment of 1,143.87 with 15 years remaining? 7.
Stock. What is the required rate of return on a stock with a a.
$0.75 expected dividend and a 34 price with 7% growth? b. $1.25
expected dividend and a 15 price with 8% growth?
Attachments

4182043-A3-Part_1.docx

Week 9 _Assignment III_ (assigned to expert4help)

Arlington Campus Please write the best answer to the following
two problems and submit your response in Black Board under Week 9
_Assignment III_ by 5:30 PM on Monday June 16, 2014. Please be
organized and show all your work. Best of Luck
Chapter 10
7) Royersford Knitting Mills, Ltd, sells a line of women’s knit
underwear. The firm now sells about 20,000 pairs a year at an
average price of $10 each. Fixed costs amount to $60,000, and a
total varibale costs equal $120,000. The production department has
estimated that a 10 percent increase in output would not affect
fixed costs but would reduce average variable cost by 40 cents. The
marketing department advocates a price reduction of 5 percent to
increase sales, total revenues, and profits. The arc elasticity of
demand with respect to prices is estimated at -2. A) Evaluate the
impact of the proposal to cut prices on (i) total revenue, (ii)
total cost, and (iii) total profits. B) If average variable costs
are assumed to remain constant over a 10 percent increase in
output, evaluate the effects of the proposoed price cut on total
profits.
Chapter 11
4. Unique Creations holds a monopoly position in the production
and sale of magnometers. The cost function facing Unique is
estimated to be TC= $100,000 + 20Q
A) What is the marginal cost for Unique B) if the price
elasticity of demand for Unique is currently -1.5, what price
should Unique charge? C) What is the marginal revenue at the price
computed in Part (b)? D) If a competitor develops a substitute for
the magnometer and the price elasticity increases to -3,0, what
price should Unique charge?
Attachments

Week 9 Assignment 3.docx