Implicit cost refers to

Implicit cost refers to
a.ÿÿ ÿthe amount a firm receives for selling its
product or service
b.ÿÿ ÿany increase in the value of the assets owned
by the firm
c.ÿÿ ÿthe opportunity cost of factors of production
provided by the owners of the firm
d.ÿÿ ÿexplicit payments to the factors of
production

Which of the following barometric indicators would be the most helpful for forecasting

Which of the following barometric indicators would be the
most helpful for forecasting future sales for an
industry?
Answer

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
lagging economic indicators.

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
leading economic indicators.

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
coincident economic indicators.

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
wishful thinking

ACCT 305

Interest my be capitalized:
On routinely manufactured goods as well as self-constructed
assets.
On self-constructed assets from the date an entity formally
adopts a plan to build a discrete project.
Whether or not there is specific borrowing for the
construction.
Whether or not there are actual interest costs incurred.

Which of the following is one of the three central questions that every economic system must answer?

Which of the following is one of the three central questions
that every economic system must answer?
a) How involved should government be in regulating
theÿactivities of big business?
b) How far should people be allowed to go in protecting their
own property?
c) Whether it is fair for some individuals to live in poverty
while others are surrounded by luxury?
d) what goods and services should society’s scarce resources be
used to produce?

Possible goals of Not-For-Profit (NFP) enterprises include all of the following

ECO 550 Week 2 Chapter 1 & 2 _ All
Correct
ÿ
Question 1 ÿÿÿ

ÿÿÿÿÿÿÿÿÿÿÿ
Possible goals of Not-For-Profit (NFP) enterprises include all of
the following EXCEPT:

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 2

ÿÿÿÿÿÿÿÿÿÿÿ
The Saturn Corporation (once a division of GM) was permanently
closed in 2009.ÿ What went wrong with Saturn?

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 3

ÿÿÿÿÿÿÿÿÿÿÿ
To reduce Agency Problems, executive compensation should be
designed to:

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 4

ÿÿÿÿÿÿÿÿÿÿÿ
The primary objective of a for-profit firm is to ___________.

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 5

ÿÿÿÿÿÿÿÿÿÿÿ
The flat-screen plasma TVs are selling extremely well.ÿ The
originators of this technology are earning higher profits.ÿ
What theory of profit best reflects the performance of the plasma
screen makers?

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 6

ÿÿÿÿÿÿÿÿÿÿÿ
Which of the following will increase (V0), the shareholder wealth
maximization model of the firm:
ÿÿÿÿÿÿÿ V0_(shares
outstanding) = __t=1 (_ t ) / (1+ke)tÿÿ + Real Option
Value.

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 7

ÿÿÿÿÿÿÿÿÿÿÿ
A Real Option Value is:

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 8

ÿÿÿÿÿÿÿÿÿÿÿ
In the shareholder wealth maximization model, the value of a firm’s
stock is equal to the present value of all expected future ____
discounted at the stockholders’ required rate of return.

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 9

ÿÿÿÿÿÿÿÿÿÿÿ
Income tax payments are an example of ____.

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 10

ÿÿÿÿÿÿÿÿÿÿÿ
Economic profit is defined as the difference between revenue and
____.

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 11

ÿÿÿÿÿÿÿÿÿÿÿ
The approximate probability of a value occurring that is greater
than one standard deviation from the mean is approximately
(assuming a normal distribution)

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 12
ÿÿÿÿÿÿÿÿÿ

ÿÿÿÿÿÿÿÿÿÿÿ
The standard deviation is appropriate to compare the risk between
two investments only if

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 13

ÿÿÿÿÿÿÿÿÿÿÿ
The closest example of a risk-free security is

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 14

ÿÿÿÿÿÿÿÿÿÿÿ
The level of an economic activity should be increased to the point
where the ____ is zero.

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 15
ÿÿÿÿÿÿÿÿÿ

ÿÿÿÿÿÿÿÿÿÿÿ
Generally, investors expect that projects with high expected net
present values also will be projects with

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 16

ÿÿÿÿÿÿÿÿÿÿÿ
A change in the level of an economic activity is desirable and
should be undertaken as long as the marginal benefits exceed the
____.

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 17
ÿÿÿÿÿÿÿÿÿ

ÿÿÿÿÿÿÿÿÿÿÿ
The net present value of an investment represents

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 18

ÿÿÿÿÿÿÿÿÿÿÿ
Based on risk-return tradeoffs observable in the financial
marketplace, which of the following securities would you expect to
offer higher expected returns than corporate bonds?

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 19

ÿÿÿÿÿÿÿÿÿÿÿ
The primary difference(s) between the standard deviation and the
coefficient of variation as measures of risk are:

ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ
_ÿ Question 20

ÿÿÿÿÿÿÿÿÿÿÿ
The ____ is the ratio of ____ to the ____.

ECON 220 – Impact of Industry’s Mergers (All Parts Answered) | A+ | GUARANTEED

Deliverable Length: 5-8 pages
Details: There have been several mergers of large firms within
oligopolies. In this assignment, you are to assess the impact of
those mergers, on industry, on consumers and on society as a whole.
There are three parts to the assignment.
_First, you are to go to the Federal Trade Commission_s website at
http://www.ftc.gov/bc/index.shtml and select one proposed merger
for your paper. Then, in a group discussion board, present a
complete description of the industry.
_Second, in another group discussion board, present two arguments:
One in support of the merger and the other opposing the merger.
_Finally, write a 5-8 page paper that contains the industry
description, and the two arguments.
_Set-up a group discussion board and post the following
information.
Part 1) Industry Description:

1.Describe the firms in the proposed merger. List their annual
sales, and extent of their operations.
2.From the firms’ point of view, what are some of the incentives to
consolidate?
3.List and describe the firms in the industry.
4.Describe the product, production methods, scale of production,
and sources for raw materials. What technologies are used?
5.Describe the competitive environment within the industry. Is
there a dominant firm? Are the other firms follow or actively
compete? How do they compete? (For example, by using price,
advertising, quality or some other variable.)
6.Report and interpret the 4 firm concentration ratio, the 8 firm
concentration ratio and the Herfindahl Herschler Index for the
industry.
Part 2) Two Arguments:
In a separate group discussion board, present two arguments. The
first should argue in favor of the proposed merger, from the
perspective of the firms. The second agrues against the proposed
merger from the perspective of the broader public interest. In
those arguments, answer the following questions.
1.Explain the importance of competition among firms.
2.Explain whether the competitive environment in this industry
benefits society or not.
3.Is a high degree of market concentration a boon or threat to
consumers? Explain. Use either the allocative efficiency or dynamic
efficiency arguments.
4.Can the oligopoly market structure benefit both consumers and
businesses by forging common standards in industries that
experience rapid technological change?
Part 3) Written Report:

Write a 5-8 page paper that contains the information presented in
your group discussion boards. Concentration ratios and descriptive
statistics for various industries are available at the Census
Bureau_s economic census web site:
http://www.census.gov/epcd/www/concentration.html .

This assignment will also be assessed using additional criteria
provided here.
Please add your file.

For assistance with your assignment, please use your text, Web
resources, and all course materials

A++ solution The media and others suggest that the current account deficit run by the U.S. is a problem for the economy.

The media and others suggest that the current account deficit
run by the U.S. is a problem for the economy.
Respond to the following:

What do you think?
What action(s) would you advise federal government officials to
take on this issue?
Be sure to define and explain what the Current Account Deficit
is.