According to the classical dichotomy, when the money supply
doubles which of the following double?
a.ÿÿ ÿthe price level and nominal GDP
b.ÿÿ ÿthe price level and real GDP
c.ÿÿ ÿonly real GDP
d.ÿÿ ÿonly the price level
Monopolistically competitive firms are typically characterized
a.ÿÿ ÿmany firms selling products that are similar,
but not identical.
b.ÿÿ ÿmany firms selling identical products.
c.ÿÿ ÿa few firms selling products that are similar,
but not identical.
d.ÿÿ ÿa few firms selling highly different
1. What is the relationship between GDP and the business
cycle? How can you use information about the business cycle when
making a decision about a large purchase?
2. What is inflation? How do interest rates affect
inflation? What are the different types of unemployment? Which of
these has the most impact on the economy? Explain.
A study of Machiavellian traits in actuaries was performed.
Machiavellian describes negative character traits such as
manipulation, cunning, duplicity, deception, and bad faith. A Mach
rating score was determined for each in a sample of actuaries. The
actuaries were then classified as having high, moderate, or low
Mach rating scores. The researcher investigated the impact of both
Mach score classification and marital status on the average income
of an actuary. For this experiment, identify a.the experimental
unit, b. the response variable, c. the factors, d. the levels of
each factor, and e.the treatments.
a. What are the experimental units? __employers __ marital
status __Mach rating scores __actuaries __income __ employees
__dollars __Mach score classification
b. What is the response variable? __income __Mach rating scores
__negative character traits __Mach score classification __marital
c. What are the factors? Select all that apply.
__A. negative character traits __B. marital status __C. Mach
rating scores __D. Mach score classification
d. What are the levels of each factor? Select all that
Oil field pipes are internally coated in order to prevent corrosion.doc
generating alternative capital-investment project proposals
estimating cash flows for the project proposals
reviewing the investment projects after they have been
allocate manpower to the various divisions within the firm
In order to help assure that all relevant factors will be
considered, the capital-expenditure selection process should
include the following stepsÿexcept:
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
Which of the following barometric indicators would be the
most helpful for forecasting future sales for an
lagging economic indicators.
leading economic indicators.
coincident economic indicators.
Interest my be capitalized:
On routinely manufactured goods as well as self-constructed
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
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?
a) How involved should government be in regulating
theÿactivities of big business?
b) How far should people be allowed to go in protecting their
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?