11-1
Macroeconomics
Instructor: Jen Dinsmore Hanson
Homework Assignment
Chapter 11
Multiple Choice Questions
1. Say's law
A. was a basic pillar of classical economics.
B. was a basic pillar of Keynesian economics.
C. was formulated during the Great Depression.
D. proves that we can never have full employment.
2. Which question did John Maynard Keynes pose for the classical economists?
A. What if their policies led to inflation?
B. What if savings and investment were not equal?
C. What if government intervention did not cure a recession?
D. John Maynard Keynes posed none of these questions
3. At equilibrium GDP
A. Savings = investment, but aggregate demand does not equal aggregate supply.
B. Savings = investment and aggregate demand = aggregate supply.
C. Savings does not equal investment and aggregate demand does not equal aggregate supply.
D. Savings does not equal investment, but aggregate demand = aggregate supply.
4. Laissez-faire economics was advocated by
A. both Keynes and the classicals.
B. neither Keynes nor the classicals.
C. the classicals, but not by Keynes.
D. Keynes, but not by the classicals.
5. When the average price level in the United States, relative to the average price levels in
other countries, rises, this tends to
A. raise imports and exports.
B. lower imports and exports.
C. raise imports and lower exports.
D. lower imports and raise exports.
6. According to the classicals, our economy can produce beyond the full employment output
A. only in the short run.
B. only in the long run.
C. in both the short run and the long run.
D. in neither the short run nor the long run.
11-2
7. Keynes and the classicals used _____ aggregate demand and supply apparatuses and came
to _____ conclusions.
A. the same; the same
B. different; different
C. the same; different
D. different; the same
8. John Maynard Keynes
A. agreed with classical writers that strong automatic pressures drive market economies to full
employment.
B. focused on attaining the long-run macroeconomic goal of high, but stable economic
growth.
C. argued that a market economy might become stuck in a short-run equilibrium in which
substantial capital and labor lay idle.
D. argued that short-run equilibrium occurs only at full employment.
9. The notion that everything the economy produces is purchased
A. sums up Say's law.
B. can be restated as "demand creates its own supply."
C. refers to the real balance effect.
D. was a critical assumption Keynes made in explaining the worldwide depression of the
1930s.
10. If the economy is in the vertical portion of the AS curve, what will be the effect of an
increase in the price level on output produced?
A. Output will increase at a very rapid rate
B. Output will not change
C. Output will only slightly increase
D. Output change cannot be predicted from information given
11. The wealth or.
This assignment is for A-plus Writer......The distinction betw.docxmeagantobias
This assignment is for A-plus Writer......
The distinction between classical and modern Keynesian macroeconomics is based on
a.
the exact year the Great Depression started in the U.S. (1929).
b.
the publication of
The Wealth of Nations
.
c.
the publication of
The General Theory of Employment, Interest, and Money.
d.
the approval of Congress of
President Roosevelt’s New Deal.
Starting with the trough, which of the following is the correct order of what then occurs in the business cycle?
a.
recession, prosperity, recession, prosperity
b.
prosperity, recession, another trough
c.
expansion, peak, recession, another trough
d.
recession, expansion, peak, another trough
It ______ a wise policy to reduce inflation to 0% since the _______ according to the Phillips’ Curve.
a.
is --
unemployment rate also decreases
b.
may not be – unemployment rate increases
c.
is --
deficit decreases
d.
may not be – deficit increases
____________ argued that the best way to solve the problem of recession and unemployment was to rely on the natural workings of the market.
a.
Keynes
b.
Marx
c.
the classical economists
An increase in aggregate demand with an upward (positively) sloping supply curve will
a.
increase employment.
b.
keep the price level constant.
c.
increase output.
d.
all of the above.
e.
a) and c) are correct.
If both the demand curve and supply curve to the right, which of the following will definitely occur?
a.
Price increases.
b.
Price decreases.
c.
Quantity increases.
d.
Quantity decreases.
e.
Both a) and c) are correct.
Which one of the following items is
NOT
a factor cost?
a.
proprietor's income
b.
employees' compensation
c.
business transfer payments
d.
dividends
e.
rental income of persons
Consider a $20,000 certificate of deposit that yields a 10 percent annual interest rate.
If there is 5 percent inflation, then 10 percent can be considered
a.
the nominal interest rate.
b.
the real interest rate.
c.
both of these
Demand-pull inflation is caused by a shift to the ______in the _______ demand curve.
a.
right -- aggregate
b.
left -- aggregate
c.
right -- microeconomic
d.
left -- microeconomic
If both the unemployment rate and the inflation rate increase, the best term to describe it is
a.
the Phillips Curve.
b.
aggregate demand.
c.
aggregate supply.
d.
stagflation.
If the unemployment rate decreases from the previous month, then one can infer the change in the total number of people working from the month before
a.
increases.
b.
decreases.
c.
stays the same.
d.
could be any of the above.
Other things being equal, inflation initially decreases the _______ interest rate.
a.
real
b.
nominal
c.
both of these.
If nominal GDP is increasing at the same rate as real GDP, then it is definitely true that there is
a.
inflation.
b.
output increasing over time.
c.
both of these.
What does Mary's .
1.The aggregate supply curve relating the price level to real GDP.docxherminaprocter
1.
The aggregate supply curve relating the price level to real GDP has three distinguishing segments. Which one of the following indicates the segments?
A) The horizontal segment reflects the increasing pressure on the price level as firms bid for resources. The upward-sloping segment reflects the availability of unused resources. The vertical segment reflects the full employment of all resources.
B) The horizontal segment reflects the availability of unused resources. The upward-sloping segment reflects the full employment of all resources. The vertical segment reflects the increasing pressure on the price level as firms bid for resources.
C) The horizontal segment reflects the full employment of all resources. The upward-sloping segment reflects the increasing pressure on the price level as firms bid for resources. The vertical segment reflects the availability of unused resources.
D) The horizontal segment reflects the availability of unused resources. The downward-sloping segment reflects decreasing pressure on the price level as firms bid for resources. The vertical segment reflects the full employment of all resources.
E) The horizontal segment reflects the availability of unused resources. The upward-sloping segment reflects increasing pressure on the price level as firms bid for resources. The vertical segment reflects the full employment of all resources.
2.
Fiscal policy is government action to influence aggregate demand and in turn to influence the level of real GDP and the price level, through:
A) expanding and contracting the money supply.
B) regulation of net exports.
C) changes in government spending and/or tax revenues.
D) encouraging businesses to invest.
3.
"It would be an undue hardship to require people whose income is below $15,000 per year to pay income taxes." This statement reflects which of the following principles for a tax?
A) Benefits-received.
B) Inexpensive-to-collect.
C) Ability-to-pay.
D) Fairness of contribution.
4.
Exhibit 14-6 Aggregate supply curve
nar004-1.jpg
In Exhibit 14-6, the aggregate supply curve becomes vertical at GDP = $1,200 because:
A) there are no more workers available at any wage rate to increase real GDP.
B) the price level remains constant.
C) the only workers available would demand higher wage rates.
D) the economy is experiencing low employment and low production.
E) the Treasury is no longer allowed to explain away the deficit with creative accounting
5.
Exhibit 14-8 Aggregate demand and supply
nar005-1.jpg
In Exhibit 14-8, if aggregate demand shifts from AD3 to AD4, real GDP will:
A) rise from $7.0 to $8.0, and the price level will rise from 120 to 140.
B) rise from $7.0 to $8.0, and the price level will rise from 120 to 170.
C) rise from $7.0 to $8.0, and the price level will rise from 100 to 140.
D) not change, and the price level will rise from 120 to 140.
E) rise from $4.0 to $8.0, and the price level will rise from 120 to 140.
6.
The m.
Page 1 of 17 ECON 201 Introduction to Macroeconomics .docxalfred4lewis58146
Page 1 of 17
ECON 201: Introduction to Macroeconomics
Final Exam
December 5, 2011
NAME: _________________________________
Circle your TA’s name: Agustin Brian Meysam
Circle your section time: 9 a.m. 3 p.m.
INSTRUCTIONS:
1. The exam lasts 2 hours.
2. The exam is worth 120 points in total: 45 points for the multiple choice questions (Part A), and
75 points for the six analytical problems (Part B).
3. Write your answers for part A (the multiple choice section) in the blanks below. You won’t
get credit for circled answers in the multiple choice section. There is no penalty to guessing, so
be sure to answer all of them.
4. Place all of your answers for part B in the space provided.
5. You must show your work for part B questions. There is no need to explain your answers for the
multiple choice questions.
6. Calculators are permitted. Books, notes, reference materials, etc. are prohibited.
7. Good luck!
PART A: Multiple Choice Problems. Answer multiple choice questions in the space provided
below. PLEASE USE CAPITAL LETTERS.
1 11 21 31 41
2 12 22 32 42
3 13 23 33 43
4 14 24 34 44
5 15 25 35 45
6 16 26 36
7 17 27 37
8 18 28 38
9 19 29 39
10 20 30 40
MC Q1 Q2 Q3 Q4 Q5 Q6 Total
Page 2 of 17
Part A. Multiple Choice Questions (45 points)
1. Money is
A) backed by gold in Fort Knox.
B) the same as income.
C) the value of all coins and currency in circulation at any time.
D) anything that is generally accepted as a medium of exchange.
2. The development of money as a medium of exchange has facilitated the expansion of trade because
A) holding money increases people's income.
B) no other mediums of exchange are available.
C) money eliminates the "double coincidence of wants" problem.
D) holding money increases people's wealth.
3. The price of bonds and the interest rate are
A) not related.
B) positively related.
C) negatively related.
D) sometimes positively related and other times negatively related, depending on the bond payments.
4. As the interest rate falls, people hold ________ money instead of bonds because the opportunity cost of
holding money has ________.
A) more; fallen
B) more; risen
C) less; fallen
D) less; risen
5. The lecture and readings explain the recent rise in food prices by
A) Subsidies to ethanol
B) Economic growth in China
C) Economic growth in the US
D) Quotas on corn imports
E) A) and B)
F) A) and D)
6. An example of a contractionary monetary policy is
A) an increase in the required reserve ratio.
B) a reduction in the taxes banks pay on their profits.
C) a decrease in the discount rate.
D) the Fed buying government securities in the open market.
7. Which of the following sequence of events follows an expansionary monetary policy?
A) r↓ ⇒ I↓ ⇒ AE↓ ⇒ Y↓.
B) r↑ ⇒ I↑ ⇒ AE↓ ⇒ Y↑.
C) r↑ ⇒ I↓ ⇒ AE↓ ⇒ Y↓.
D) r↓ ⇒ I↑ ⇒ AE↑ ⇒ Y↑.
Page 3 of 17
.
1.The tax multiplier associated with a $10B reduction in taxes i.docxhyacinthshackley2629
1.
The tax multiplier associated with a $10B reduction in taxes is _______ the spending multiplier associated with a $10B increase in government spending because __________
a.
the same quantity as / a tax change will either put more income into or out of savings
b.
smaller than / a tax change also involves a change in savings in the first round of spending
c.
larger than / taxes cause more discretionary income to be spent whether it is a tax increase or a tax decrease
d.
smaller than / the tax multiplier is usually very unstable
2.
Each year the Tax Foundation calculates the day of the year the average income earner has to work in order to pay taxes. This is known as Tax Freedom Day. Last year’s date, April 26, was three days later than the previous year’s. The Tax Foundation says this is because of economic growth leading to higher incomes and higher taxes.
This observation makes sense since our income tax system is progressive and therefore ___________. This is also consistent with ____________.
a.
takes a higher percent of income, the greater one’s income – how automatic stabilizers work
b.
takes a lower percent of income, the greater one’s income – how automatic stabilizers work
c.
takes a higher percent of income, the greater one’s income – the discretionary tools of fiscal policy
d.
takes a lower percent of income, the greater one’s income – monetary policy
3.
A house is a ______________ asset, and therefore this means that it takes ________ to recover its true value in the marketplace.
a.
liquid -- much time
b.
non-liquid -- much time
c.
liquid – very little time
d.
non-liquid -- very little time
4
."An increase in national income increases aggregate demand more than the initial increase in spending." The preceding statement describes
a.
microeconomic supply and demand curves.
b.
macroeconomic supply and demand curves.
c.
the spending multiplier.
d.
the money multiplier.
e.
both c) and d) are correct.
5.
If the Fed buys $1,000 worth of bonds and the banking multiplier is 8, then
a.
the reserve ratio is 12.5 percent.
b.
the potential money supply increase is greater than $1,000.
c.
there must also be a government spending increase or the Fed would not be buying the bonds.
d.
all of the above.
e.
both a) and b) are correct.
6.
Both fiscal and monetary policy affect the money supply.
a.
true
b.
false
7.
The Fed is considered "autonomous." In practice this means the Board of Governors
a.
run for reelection every 4 years.
b.
are more insulated from the wishes of the voters than Congress.
c.
are less insulated from the wishes of the voters than Congress.
d.
can do whatever they please since they have lifetime appointments.
8.
Which of the policy combinations given below would consistently work in the direction of decreasing the rate of growth of the money supply?
a.
Raise the discount rate, lower the reserve requirement and engage in open market sales.
b.
Lower the discount rate, lower the res.
1.The tax multiplier associated with a $10B reduction in t.docxelliotkimberlee
1.
The tax multiplier associated with a $10B reduction in taxes is _______ the spending multiplier associated with a $10B increase in government spending because __________
a.
the same quantity as / a tax change will either put more income into or out of savings
b.
smaller than / a tax change also involves a change in savings in the first round of spending
c.
larger than / taxes cause more discretionary income to be spent whether it is a tax increase or a tax decrease
d.
smaller than / the tax multiplier is usually very unstable
2.
Each year the Tax Foundation calculates the day of the year the average income earner has to work in order to pay taxes.
This is known as Tax Freedom Day.
Last year’s date, April 26, was three days later than the previous year’s.
The Tax Foundation says this is because of economic growth leading to higher incomes and higher taxes.
This observation makes sense since our income tax system is progressive and therefore ___________.
This is also consistent with ____________.
a.
takes a higher percent of income, the greater one’s income – how automatic stabilizers work
b.
takes a lower percent of income, the greater one’s income – how automatic stabilizers work
c.
takes a higher percent of income, the greater one’s income – the discretionary tools of fiscal policy
d.
takes a lower percent of income, the greater one’s income – monetary policy
3.
A house is a ______________ asset, and therefore this means that it takes ________ to recover its true value in the marketplace.
a.
liquid
-- much time
b.
non-liquid
-- much time
c.
liquid – very little time
d.
non-liquid
-- very little time
4
."An increase in national income increases aggregate demand more than the initial increase in spending."
The preceding statement describes
a.
microeconomic supply and demand curves.
b.
macroeconomic supply and demand curves.
c.
the spending multiplier.
d.
the money multiplier.
e.
both c) and d) are correct.
5.
If the Fed buys $1,000 worth of bonds and the banking multiplier is 8, then
a.
the reserve ratio is 12.5 percent.
b.
the potential money supply increase is greater than $1,000.
c.
there must also be a government spending increase or the Fed would not be buying the bonds.
d.
all of the above.
e.
both a) and b) are correct.
6.
Both fiscal and monetary policy affect the money supply.
a.
true
b.
false
7.
The Fed is considered "autonomous."
In practice this means the Board of Governors
a.
run for reelection every 4 years.
b.
are more insulated from the wishes of the voters than Congress.
c.
are less insulated from the wishes of the voters than Congress.
d.
can do whatever they please since they have lifetime appointments.
8.
Which of the policy combinations given below would consistently work in the direction of decreasing the rate of growth of the money supply?
a.
Raise the discount rate, lower the reserve requirement and engage in open mar.
This assignment is for A-plus Writer......The distinction betw.docxmeagantobias
This assignment is for A-plus Writer......
The distinction between classical and modern Keynesian macroeconomics is based on
a.
the exact year the Great Depression started in the U.S. (1929).
b.
the publication of
The Wealth of Nations
.
c.
the publication of
The General Theory of Employment, Interest, and Money.
d.
the approval of Congress of
President Roosevelt’s New Deal.
Starting with the trough, which of the following is the correct order of what then occurs in the business cycle?
a.
recession, prosperity, recession, prosperity
b.
prosperity, recession, another trough
c.
expansion, peak, recession, another trough
d.
recession, expansion, peak, another trough
It ______ a wise policy to reduce inflation to 0% since the _______ according to the Phillips’ Curve.
a.
is --
unemployment rate also decreases
b.
may not be – unemployment rate increases
c.
is --
deficit decreases
d.
may not be – deficit increases
____________ argued that the best way to solve the problem of recession and unemployment was to rely on the natural workings of the market.
a.
Keynes
b.
Marx
c.
the classical economists
An increase in aggregate demand with an upward (positively) sloping supply curve will
a.
increase employment.
b.
keep the price level constant.
c.
increase output.
d.
all of the above.
e.
a) and c) are correct.
If both the demand curve and supply curve to the right, which of the following will definitely occur?
a.
Price increases.
b.
Price decreases.
c.
Quantity increases.
d.
Quantity decreases.
e.
Both a) and c) are correct.
Which one of the following items is
NOT
a factor cost?
a.
proprietor's income
b.
employees' compensation
c.
business transfer payments
d.
dividends
e.
rental income of persons
Consider a $20,000 certificate of deposit that yields a 10 percent annual interest rate.
If there is 5 percent inflation, then 10 percent can be considered
a.
the nominal interest rate.
b.
the real interest rate.
c.
both of these
Demand-pull inflation is caused by a shift to the ______in the _______ demand curve.
a.
right -- aggregate
b.
left -- aggregate
c.
right -- microeconomic
d.
left -- microeconomic
If both the unemployment rate and the inflation rate increase, the best term to describe it is
a.
the Phillips Curve.
b.
aggregate demand.
c.
aggregate supply.
d.
stagflation.
If the unemployment rate decreases from the previous month, then one can infer the change in the total number of people working from the month before
a.
increases.
b.
decreases.
c.
stays the same.
d.
could be any of the above.
Other things being equal, inflation initially decreases the _______ interest rate.
a.
real
b.
nominal
c.
both of these.
If nominal GDP is increasing at the same rate as real GDP, then it is definitely true that there is
a.
inflation.
b.
output increasing over time.
c.
both of these.
What does Mary's .
1.The aggregate supply curve relating the price level to real GDP.docxherminaprocter
1.
The aggregate supply curve relating the price level to real GDP has three distinguishing segments. Which one of the following indicates the segments?
A) The horizontal segment reflects the increasing pressure on the price level as firms bid for resources. The upward-sloping segment reflects the availability of unused resources. The vertical segment reflects the full employment of all resources.
B) The horizontal segment reflects the availability of unused resources. The upward-sloping segment reflects the full employment of all resources. The vertical segment reflects the increasing pressure on the price level as firms bid for resources.
C) The horizontal segment reflects the full employment of all resources. The upward-sloping segment reflects the increasing pressure on the price level as firms bid for resources. The vertical segment reflects the availability of unused resources.
D) The horizontal segment reflects the availability of unused resources. The downward-sloping segment reflects decreasing pressure on the price level as firms bid for resources. The vertical segment reflects the full employment of all resources.
E) The horizontal segment reflects the availability of unused resources. The upward-sloping segment reflects increasing pressure on the price level as firms bid for resources. The vertical segment reflects the full employment of all resources.
2.
Fiscal policy is government action to influence aggregate demand and in turn to influence the level of real GDP and the price level, through:
A) expanding and contracting the money supply.
B) regulation of net exports.
C) changes in government spending and/or tax revenues.
D) encouraging businesses to invest.
3.
"It would be an undue hardship to require people whose income is below $15,000 per year to pay income taxes." This statement reflects which of the following principles for a tax?
A) Benefits-received.
B) Inexpensive-to-collect.
C) Ability-to-pay.
D) Fairness of contribution.
4.
Exhibit 14-6 Aggregate supply curve
nar004-1.jpg
In Exhibit 14-6, the aggregate supply curve becomes vertical at GDP = $1,200 because:
A) there are no more workers available at any wage rate to increase real GDP.
B) the price level remains constant.
C) the only workers available would demand higher wage rates.
D) the economy is experiencing low employment and low production.
E) the Treasury is no longer allowed to explain away the deficit with creative accounting
5.
Exhibit 14-8 Aggregate demand and supply
nar005-1.jpg
In Exhibit 14-8, if aggregate demand shifts from AD3 to AD4, real GDP will:
A) rise from $7.0 to $8.0, and the price level will rise from 120 to 140.
B) rise from $7.0 to $8.0, and the price level will rise from 120 to 170.
C) rise from $7.0 to $8.0, and the price level will rise from 100 to 140.
D) not change, and the price level will rise from 120 to 140.
E) rise from $4.0 to $8.0, and the price level will rise from 120 to 140.
6.
The m.
Page 1 of 17 ECON 201 Introduction to Macroeconomics .docxalfred4lewis58146
Page 1 of 17
ECON 201: Introduction to Macroeconomics
Final Exam
December 5, 2011
NAME: _________________________________
Circle your TA’s name: Agustin Brian Meysam
Circle your section time: 9 a.m. 3 p.m.
INSTRUCTIONS:
1. The exam lasts 2 hours.
2. The exam is worth 120 points in total: 45 points for the multiple choice questions (Part A), and
75 points for the six analytical problems (Part B).
3. Write your answers for part A (the multiple choice section) in the blanks below. You won’t
get credit for circled answers in the multiple choice section. There is no penalty to guessing, so
be sure to answer all of them.
4. Place all of your answers for part B in the space provided.
5. You must show your work for part B questions. There is no need to explain your answers for the
multiple choice questions.
6. Calculators are permitted. Books, notes, reference materials, etc. are prohibited.
7. Good luck!
PART A: Multiple Choice Problems. Answer multiple choice questions in the space provided
below. PLEASE USE CAPITAL LETTERS.
1 11 21 31 41
2 12 22 32 42
3 13 23 33 43
4 14 24 34 44
5 15 25 35 45
6 16 26 36
7 17 27 37
8 18 28 38
9 19 29 39
10 20 30 40
MC Q1 Q2 Q3 Q4 Q5 Q6 Total
Page 2 of 17
Part A. Multiple Choice Questions (45 points)
1. Money is
A) backed by gold in Fort Knox.
B) the same as income.
C) the value of all coins and currency in circulation at any time.
D) anything that is generally accepted as a medium of exchange.
2. The development of money as a medium of exchange has facilitated the expansion of trade because
A) holding money increases people's income.
B) no other mediums of exchange are available.
C) money eliminates the "double coincidence of wants" problem.
D) holding money increases people's wealth.
3. The price of bonds and the interest rate are
A) not related.
B) positively related.
C) negatively related.
D) sometimes positively related and other times negatively related, depending on the bond payments.
4. As the interest rate falls, people hold ________ money instead of bonds because the opportunity cost of
holding money has ________.
A) more; fallen
B) more; risen
C) less; fallen
D) less; risen
5. The lecture and readings explain the recent rise in food prices by
A) Subsidies to ethanol
B) Economic growth in China
C) Economic growth in the US
D) Quotas on corn imports
E) A) and B)
F) A) and D)
6. An example of a contractionary monetary policy is
A) an increase in the required reserve ratio.
B) a reduction in the taxes banks pay on their profits.
C) a decrease in the discount rate.
D) the Fed buying government securities in the open market.
7. Which of the following sequence of events follows an expansionary monetary policy?
A) r↓ ⇒ I↓ ⇒ AE↓ ⇒ Y↓.
B) r↑ ⇒ I↑ ⇒ AE↓ ⇒ Y↑.
C) r↑ ⇒ I↓ ⇒ AE↓ ⇒ Y↓.
D) r↓ ⇒ I↑ ⇒ AE↑ ⇒ Y↑.
Page 3 of 17
.
1.The tax multiplier associated with a $10B reduction in taxes i.docxhyacinthshackley2629
1.
The tax multiplier associated with a $10B reduction in taxes is _______ the spending multiplier associated with a $10B increase in government spending because __________
a.
the same quantity as / a tax change will either put more income into or out of savings
b.
smaller than / a tax change also involves a change in savings in the first round of spending
c.
larger than / taxes cause more discretionary income to be spent whether it is a tax increase or a tax decrease
d.
smaller than / the tax multiplier is usually very unstable
2.
Each year the Tax Foundation calculates the day of the year the average income earner has to work in order to pay taxes. This is known as Tax Freedom Day. Last year’s date, April 26, was three days later than the previous year’s. The Tax Foundation says this is because of economic growth leading to higher incomes and higher taxes.
This observation makes sense since our income tax system is progressive and therefore ___________. This is also consistent with ____________.
a.
takes a higher percent of income, the greater one’s income – how automatic stabilizers work
b.
takes a lower percent of income, the greater one’s income – how automatic stabilizers work
c.
takes a higher percent of income, the greater one’s income – the discretionary tools of fiscal policy
d.
takes a lower percent of income, the greater one’s income – monetary policy
3.
A house is a ______________ asset, and therefore this means that it takes ________ to recover its true value in the marketplace.
a.
liquid -- much time
b.
non-liquid -- much time
c.
liquid – very little time
d.
non-liquid -- very little time
4
."An increase in national income increases aggregate demand more than the initial increase in spending." The preceding statement describes
a.
microeconomic supply and demand curves.
b.
macroeconomic supply and demand curves.
c.
the spending multiplier.
d.
the money multiplier.
e.
both c) and d) are correct.
5.
If the Fed buys $1,000 worth of bonds and the banking multiplier is 8, then
a.
the reserve ratio is 12.5 percent.
b.
the potential money supply increase is greater than $1,000.
c.
there must also be a government spending increase or the Fed would not be buying the bonds.
d.
all of the above.
e.
both a) and b) are correct.
6.
Both fiscal and monetary policy affect the money supply.
a.
true
b.
false
7.
The Fed is considered "autonomous." In practice this means the Board of Governors
a.
run for reelection every 4 years.
b.
are more insulated from the wishes of the voters than Congress.
c.
are less insulated from the wishes of the voters than Congress.
d.
can do whatever they please since they have lifetime appointments.
8.
Which of the policy combinations given below would consistently work in the direction of decreasing the rate of growth of the money supply?
a.
Raise the discount rate, lower the reserve requirement and engage in open market sales.
b.
Lower the discount rate, lower the res.
1.The tax multiplier associated with a $10B reduction in t.docxelliotkimberlee
1.
The tax multiplier associated with a $10B reduction in taxes is _______ the spending multiplier associated with a $10B increase in government spending because __________
a.
the same quantity as / a tax change will either put more income into or out of savings
b.
smaller than / a tax change also involves a change in savings in the first round of spending
c.
larger than / taxes cause more discretionary income to be spent whether it is a tax increase or a tax decrease
d.
smaller than / the tax multiplier is usually very unstable
2.
Each year the Tax Foundation calculates the day of the year the average income earner has to work in order to pay taxes.
This is known as Tax Freedom Day.
Last year’s date, April 26, was three days later than the previous year’s.
The Tax Foundation says this is because of economic growth leading to higher incomes and higher taxes.
This observation makes sense since our income tax system is progressive and therefore ___________.
This is also consistent with ____________.
a.
takes a higher percent of income, the greater one’s income – how automatic stabilizers work
b.
takes a lower percent of income, the greater one’s income – how automatic stabilizers work
c.
takes a higher percent of income, the greater one’s income – the discretionary tools of fiscal policy
d.
takes a lower percent of income, the greater one’s income – monetary policy
3.
A house is a ______________ asset, and therefore this means that it takes ________ to recover its true value in the marketplace.
a.
liquid
-- much time
b.
non-liquid
-- much time
c.
liquid – very little time
d.
non-liquid
-- very little time
4
."An increase in national income increases aggregate demand more than the initial increase in spending."
The preceding statement describes
a.
microeconomic supply and demand curves.
b.
macroeconomic supply and demand curves.
c.
the spending multiplier.
d.
the money multiplier.
e.
both c) and d) are correct.
5.
If the Fed buys $1,000 worth of bonds and the banking multiplier is 8, then
a.
the reserve ratio is 12.5 percent.
b.
the potential money supply increase is greater than $1,000.
c.
there must also be a government spending increase or the Fed would not be buying the bonds.
d.
all of the above.
e.
both a) and b) are correct.
6.
Both fiscal and monetary policy affect the money supply.
a.
true
b.
false
7.
The Fed is considered "autonomous."
In practice this means the Board of Governors
a.
run for reelection every 4 years.
b.
are more insulated from the wishes of the voters than Congress.
c.
are less insulated from the wishes of the voters than Congress.
d.
can do whatever they please since they have lifetime appointments.
8.
Which of the policy combinations given below would consistently work in the direction of decreasing the rate of growth of the money supply?
a.
Raise the discount rate, lower the reserve requirement and engage in open mar.
1. During a recession the economy experiencesa. rising employm.docxadolphoyonker
1. During a recession the economy experiences
a.
rising employment and income.
b.
rising employment and falling income.
c.
rising income and falling employment.
d.
falling employment and income.
2. Most economists use the aggregate demand and aggregate supply model primarily to analyze
a.
short-run fluctuations in the economy.
b.
the effects of macroeconomic policy on the prices of individual goods.
c.
the long-run effects of international trade policies.
d.
productivity and economic growth.
3. The classical dichotomy refers to the separation of
a.
prices and nominal interest rates.
b.
taxes and government spending.
c.
decisions made by the public and decisions made by the government.
d.
real and nominal variables.
4. According to classical macroeconomic theory, changes in the money supply affect
a.
variables measured in terms of money and variables measured in terms of quantities or relative prices
b.
variables measured in terms of money but not variables measured in terms of quantities or relative prices
c.
variables measured in terms of quantities or relative prices, but not variables measured in terms of money
d.
neither variables measured in terms of money nor variables measured in terms of quantities or relative prices
5. Most economists believe that money neutrality
a.
does not hold in the short run.
b.
does not hold in the long run.
c.
does not hold in either the short run or long run.
d.
holds in the short run and the long run.
6. The aggregate demand and aggregate supply graph has
a.
quantity of output on the horizontal axis. Output can be measured by the GDP deflator.
b.
quantity of output on the horizontal axis. Output can be measured by real GDP.
c.
quantity of output on the vertical axis. Output can be measured by the GDP deflator.
d.
quantity of output on the vertical axis. Output can be measured by real GDP.
7. Aggregate demand includes
a.
the quantity of goods and services the government, households, firms, and customers abroad want to buy.
b.
neither the quantity of goods and services the government, households, nor firms want to buy nor the quantity of goods and services customers abroad want to buy.
c.
the quantity of goods and service the government wants to buy, but not the quantity of goods and services households, firms, or customers abroad want to buy.
d.
the quantity of goods and services households and firms want to buy, but not the quantity of goods and services the government wants to buy.
8. Other things the same, a decrease in the price level motivates people to hold
a.
less money, so they lend less, and the interest rate rises.
b.
less money, so they lend more, and the interest rate falls.
c.
more money, so they lend more, and the interest rate rises.
d.
more money, so they lend less, and the interest rate falls.
9. When the dollar depreciates, U.S.
a.
net exports rise, which increases the aggregate quantity.
South UniversityVirginia Beach CampusECO2071Name ________.docxwilliame8
South University
Virginia Beach Campus
ECO2071
Name: ____________________________________________
Score: ______________
Select the CORRECT answer to each question. Each question is worth 2 points.
1. Economics is the study of how society manages its
a.
limited wants and unlimited resources.
b.
unlimited wants and unlimited resources.
c.
limited wants and limited resources.
d.
unlimited wants and limited resources.
2. The terms equality and efficiency are similar in that they both refer to benefits to society. However they are different in that
a.
equality refers to uniform distribution of those benefits and efficiency refers to maximizing benefits from scarce resources.
b.
equality refers to maximizing benefits from scarce resources and efficiency refers to uniform distribution of those benefits.
c.
equality refers to everyone facing identical tradeoffs and efficiency refers to the opportunity cost of the benefits.
d.
equality refers to the opportunity cost of the benefits and efficiency refers to everyone facing identical tradeoffs.
3. Senator Bright, who understands economic principles, is trying to convince workers in her district that trade with other countries is beneficial. Senator Bright should argue that trade can be beneficial
a.
only if it allows us to obtain things that we couldn't make for ourselves.
b.
because it allows specialization, which increases total output.
c.
to us if we can gain and the others involved in the trade lose.
d.
in only a limited number of circumstances because others are typically self-interested.
4. A direct or positive relationship exists between a country's
a.
productivity and its standard of living.
b.
amount of government spending and its productivity.
c.
total population and its average citizen’s income.
d.
rate of population growth and the extent of its trade with other countries.
5. Economists, like mathematicians, physicists, and biologists,
a.
make use of the scientific method.
b.
try to address their subject with a scientist’s objectivity.
c.
devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories.
d.
All of the above are correct.
6. Which of the following is an example of a positive, as opposed to normative, statement?
a.
Inflation is more harmful to the economy than unemployment is.
b.
If welfare payments increase, the world will be a better place.
c.
Prices rise when the government prints too much money.
d.
When public policies are evaluated, the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency.
7. Which of the following is an example of a normative, as opposed to positive, statement?
a.
Universal health care would be good for U.S. citizens.
b.
An increase in the cigarette tax would cause a decrease in the number of smokers.
c.
A decrease in the minimum wage would decrease unemployment.
d.
A law requiri.
Chapter 1 57.What is the difference between recession and de.docxsleeperharwell
Chapter 1
57.
What is the difference between recession and depression in an economy? Provide an example of depression from the real world that has hit the global economy.
Use the following to answer question 58:
Answer: When there is a mild fall in the gross domestic product (GDP) of an economy over a period of time it leads to recession in the economy. If the intensity of the fall in GDP is severe over a period of time, then it turns into a depression. Recession is cyclic in nature; that is, it repeats itself over a period of time in an economy. A famous example of depression is that of the Great Depression of the 1930s that occurred in the United States and affected the global economy. Even the financial crisis of 2008-2009 in the United States was very much reminiscent of the Great Depression.
58.
Refer to the following graph and identify the years for which Country A and Country B experienced recession.
Country A experienced its recession during 2003 and its early recovery during 2004. Country B experienced its first recession during 2002 and its early recovery in 2003. Country B experienced a second recession in 2007.
59.
Why do we call macroeconomics an imperfect science? Explain.
The study of macroeconomics depends mainly upon the historical data on different economies. Macroeconomists analyze these data to explain changes occurring in different economic parameters (income, prices, unemployment, etc.) and formulate policies. Additionally, macroeconomic studies cannot be conducted in controlled experiments, as in biology or chemistry, for example. In this way, macroeconomists are similar to weather forecasters.
60.
Are the terms “market clearing” and “equilibrium” one and the same? Explain.
Yes, both terms represent the same notion: the balance between supply and demand. It is the balancing point at which everything that is produced gets sold and fulfills the entire demand. Thus, if all other things remain constant, then there is no tendency to change the quantity supplied and demanded at this point.
61.
Do you agree with the statement, “macroeconomics rests on the foundation of microeconomics”? Explain.
Macroeconomics involves studying the aggregate of economic variables related to individual decision making parameters, which are microeconomic (think of individuals' expenses, investments, etc.). That is to say, the total expenditure in an economy is the aggregate (sum) of all the expenditures done by all consumers in that economy, or the total investment done in an economy is the aggregate (sum) of all individual investments done by firms in that economy. This reflects that macroeconomic study rests on the foundation of microeconomics.
62.
Give two examples of macroeconomic variables and microeconomic variables.
The income of your father is a microeconomic variable, while the gross domestic product (GDP) of your country is a macroeconomic variable. The money your father saves in the bank is a microeconomic va.
1. The short-run Phillips Curve is a curve that shows the relat.docxbraycarissa250
1.
The short-run Phillips Curve is a curve that shows the relationship between the inflation rate and the pure interest rate when the natural rate of unemployment and the expected rate of inflation remain constant.
True
False
2.
At higher rates of inflation, unemployment is lower in the short-run Phillips Curve; in the long run, however, inflation has no effect on unemployment.
True
False.
3.The Federal Funds Market is actually monitored and manipulated by the Federal Reserve, but individual investors can enter the market and borrow funds if desired.
True
False
4.
One of the three main tools of the Federal Reserve is fiscal policy.
True
False
5.
The Federal Reserve's Reserve Requirement ratio can reduce the monetary base and thus the money supply.
True
False
6.
If the Federal Reserve wants to reduce interest rates and increase the velocity of money, it can utilize the open market operations tool by selling government bonds to member banks.
True
False
7.
The use of money as a medium of exchange represents the most important service that money renders.
True
False
8.
Keynes advocated government deficit spending during recessions, especially if full employment was not yet reached.
True
False
9.
ommercial banks and credit unions can create money and credit.
True
False
10. M1 includes currency, checkable deposits, and traveler's checks, but M2 does not include M1 in any way.
11.
The imposition of a tariff on foreign goods is more likely to decrease producer surplus of the domestic firms competing with those foreign firms on whom the tariff is imposed.
True
False
12.
When an American purchases a German good or invests in Germany, Euros currency is supplied and U.S. dollars are demanded.
True
False
13.
The main goal of the Federal Reserve is the unemployment rate.
True
False
14.
If the economy is in long run economic equilibrium, at potential GDP, and full employment has been reached as well, if there is an outward shift in aggregate demand, we can expect damaging inflation to start to occur and the government to seek contractionary fiscal and monetary options.
True
False
15.
If the MPC is .9, and government purchases increase by $6,000, real GDP demanded will:
a.
decrease by $60,000
b.
decrease by $6,000
c.
increase by $60,000
d.
increase by $6,000
e.
increase by $5,000
17.
Fiscal policy consists of the executive branch's decisions to tax and spend. If the economy is in an expansionary mode just coming out of a recession, in regards to aggregate demand and aggregate supply, we can assume that a tax hike will lead to
a.
the economy expanding even more as a result.
b.
aggregate demand and supply to shift inward.
c.
aggregate supply to shift inward.
d.
aggregate demand to shift inward.
e.
no changes will occur.
18.
The natural rate of unemployment is
a.
when the economy is at potential GDP.
b.
when the unemployment rate is at full employment.
.
Your company name
Your name
Instruction Page
1. On the cover page
a. Replace ‘Your Company Name’ with your company name, city and state
b. Replace ‘Date’ with the date of the plan
c. Consider inserting graphics:
i. Company logo
ii. Insert a picture or graphic of your product or service
iii. Photo of your facilities
iv. Photo of your location
2. Replace ‘ENTER YOUR COMPANY NAME HERE’ with your company name on the page with the Statement of Confidentiality & Non-Disclosure
3. Open the document header and enter your company name and your name
4. Update the table of contents as you build your business plan.
Delete this page before submitting your business plan.
Business Plan
Your Company Name Here
City, State
Date
Statement of Confidentiality & Non-Disclosure
THIS BUSINESS PLAN CONTAINS PROPRIETARY AND CONFIDENTIAL INFORMATION.
All data submitted to the receiver is provided in reliance upon its consent not to use or disclose any information contained herein except in the context of its business dealings with ENTER YOUR COMPANY NAME HERE (Company). The recipient of this document agrees to inform its present and future employees and partners who view or have access to the document's content of its confidential nature.
The recipient agrees to instruct each employee that they must not disclose any information concerning this document to others except to the extent such matters are generally known to, and are available for use by, the public. The recipient also agrees not duplicate or distribute or permit others to duplicate or distribute any material contained herein without the Company's express written consent.
The Company retains all title, ownership and intellectual property rights to the material and trademarks contained herein, including all supporting documentation, files, marketing material, and multimedia.
Disclaimer Notice
THIS BUSINESS PLAN IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
The Company reserves the right, in its sole discretion, to reject any and all proposals made by or on behalf of any recipient, to accept any such proposals, to negotiate with one or more recipients at any time, and to enter into a definitive agreement without prior notice to other recipients. The company also reserves the right to terminate, at any time, further participation in the investigation and proposal process by, or discussions or negotiations with, any recipient without reason.
BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BE BOUND BY THE AFOREMENTIONED STATEMENT.
Table of Contents
Introduction and Overview 6
Executive Summary 6
Objectives 6
Mission 6
Keys to Success 6
Company Summary 6
Company Ownership 6
Start-up 6
What We Sell 7
Summary 7
Our products 7
Our services 7
Market Analysis and Sales Forecast 8
Market and Sales Forecast Summary 8
Total Market 8
Target Market Summar.
Your Company NameYour Company NameBudget Proposalfor[ent.docxhyacinthshackley2629
Your Company Name
Your Company Name
Budget Proposal
for
[enter years here]
BUSN278
[Term]
Professor[name]
DeVry University
Table of Contents
Section
Title
Subsection
Title
Page Number1.0Executive Summary
2.0Sales Forecast
2.1Sales Forecast
2.2Methods and Assumptions
3.0Capital Expenditure Budget
4.0Investment Analysis
4.1Cash Flows
4.2NPV Analysis
4.3Rate of Return Calculations
4.4Payback Period Calculations
5.0Pro Forma Financial Statements
5.1Pro Forma Income Statement
5.2Pro Forma Balance Sheet
5.3Pro Forma Cash Budget
6.0Works Cited
7.0Appendices
7.1Appendix 1: [description]
7.2Appendix 2:
[description]
(Please put page numbers in the last column of the table of contents above, because they apply to your finished assignment. Do this after your project is complete. Remove this text and all text that is in italics in this template when finished with your project.)
(Also, please submit your Excel spreadsheet that shows your supporting calculations.)
1.0 Executive Summary
The first paragraph of this executive summary should give a brief description of the business to which this budget applies. Very briefly describe the products and services of this company, the geography or demographics of the customers it serves, and why people purchase the main product of this business. Much or all of this information will be found in the business profile provided to you. Please use your own words, and please do not simply copy and paste the explanation in the course materials. Make assumptions if necessary.
Also, provide a second paragraph that describes how the budget supports the company’s strategy.
Finally, provide a third paragraph in which you summarize the key points from your budget, including the planning horizon; the amount of up-front investment; the NPV, payback, and IRR of the project; and key figures from your income statement, cash budget, and balance sheet.
Remember, this is not a thesis or introduction of what you will talk about—it contains the major, specific content of each section. The second and third paragraphs should be written after you have completed all other sections of this template.
As you complete sections of this template, please remove all italicized text in all sections of this template and replace it with your own text or you will lose points!
2.0 Sales Forecast
Briefly introduce the sales forecast section.
2.1 Sales Forecast
Here you should include a simple table showing the years and the total sales for each year, along with a brief explanation of why sales are expected to rise, fall, change, or stay the same in certain years. Provide a brief explanation of the sales forecast, indicating why you expect sales to rise or fall during the planning horizon. Your explanation should be consistent with the trends and changes in sales found in your table.
Year 1
Year 2
Year 3
Year 4
Year 5
Sales
2.2 Methods and Assumptions
Here you should describe how you arrived at your sales forecast in sect.
Your company recently reviewed the results of a penetration test.docxhyacinthshackley2629
Your company recently reviewed the results of a penetration test on your network. Several vulnerabilities were identified, and the IT security management team has recommended mitigation. The manager has asked you to construct a plan of action and milestones (POA&M) given that the following vulnerabilities and mitigations were identified:
The penetration test showed that not all systems had malware protection software in place. The mitigation was to write a malware defense process to include all employees and retest the system after the process was implemented.
The penetration test indicated that the data server that houses employee payroll records had an admin password of “admin.” The mitigation was to perform extensive hardening of the data server.
The penetration test also identified many laptop computers that employees brought to work and connected to the internal network,some of which were easily compromised. The mitigation was to write a bring your own device (BYOD) policy for all employees and train the employees how to use their devices at work.
Complete
the 1- to 2-page
Plan of Action and Milestones Template
. (Must use this template!)
.
More Related Content
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1. During a recession the economy experiencesa. rising employm.docxadolphoyonker
1. During a recession the economy experiences
a.
rising employment and income.
b.
rising employment and falling income.
c.
rising income and falling employment.
d.
falling employment and income.
2. Most economists use the aggregate demand and aggregate supply model primarily to analyze
a.
short-run fluctuations in the economy.
b.
the effects of macroeconomic policy on the prices of individual goods.
c.
the long-run effects of international trade policies.
d.
productivity and economic growth.
3. The classical dichotomy refers to the separation of
a.
prices and nominal interest rates.
b.
taxes and government spending.
c.
decisions made by the public and decisions made by the government.
d.
real and nominal variables.
4. According to classical macroeconomic theory, changes in the money supply affect
a.
variables measured in terms of money and variables measured in terms of quantities or relative prices
b.
variables measured in terms of money but not variables measured in terms of quantities or relative prices
c.
variables measured in terms of quantities or relative prices, but not variables measured in terms of money
d.
neither variables measured in terms of money nor variables measured in terms of quantities or relative prices
5. Most economists believe that money neutrality
a.
does not hold in the short run.
b.
does not hold in the long run.
c.
does not hold in either the short run or long run.
d.
holds in the short run and the long run.
6. The aggregate demand and aggregate supply graph has
a.
quantity of output on the horizontal axis. Output can be measured by the GDP deflator.
b.
quantity of output on the horizontal axis. Output can be measured by real GDP.
c.
quantity of output on the vertical axis. Output can be measured by the GDP deflator.
d.
quantity of output on the vertical axis. Output can be measured by real GDP.
7. Aggregate demand includes
a.
the quantity of goods and services the government, households, firms, and customers abroad want to buy.
b.
neither the quantity of goods and services the government, households, nor firms want to buy nor the quantity of goods and services customers abroad want to buy.
c.
the quantity of goods and service the government wants to buy, but not the quantity of goods and services households, firms, or customers abroad want to buy.
d.
the quantity of goods and services households and firms want to buy, but not the quantity of goods and services the government wants to buy.
8. Other things the same, a decrease in the price level motivates people to hold
a.
less money, so they lend less, and the interest rate rises.
b.
less money, so they lend more, and the interest rate falls.
c.
more money, so they lend more, and the interest rate rises.
d.
more money, so they lend less, and the interest rate falls.
9. When the dollar depreciates, U.S.
a.
net exports rise, which increases the aggregate quantity.
South UniversityVirginia Beach CampusECO2071Name ________.docxwilliame8
South University
Virginia Beach Campus
ECO2071
Name: ____________________________________________
Score: ______________
Select the CORRECT answer to each question. Each question is worth 2 points.
1. Economics is the study of how society manages its
a.
limited wants and unlimited resources.
b.
unlimited wants and unlimited resources.
c.
limited wants and limited resources.
d.
unlimited wants and limited resources.
2. The terms equality and efficiency are similar in that they both refer to benefits to society. However they are different in that
a.
equality refers to uniform distribution of those benefits and efficiency refers to maximizing benefits from scarce resources.
b.
equality refers to maximizing benefits from scarce resources and efficiency refers to uniform distribution of those benefits.
c.
equality refers to everyone facing identical tradeoffs and efficiency refers to the opportunity cost of the benefits.
d.
equality refers to the opportunity cost of the benefits and efficiency refers to everyone facing identical tradeoffs.
3. Senator Bright, who understands economic principles, is trying to convince workers in her district that trade with other countries is beneficial. Senator Bright should argue that trade can be beneficial
a.
only if it allows us to obtain things that we couldn't make for ourselves.
b.
because it allows specialization, which increases total output.
c.
to us if we can gain and the others involved in the trade lose.
d.
in only a limited number of circumstances because others are typically self-interested.
4. A direct or positive relationship exists between a country's
a.
productivity and its standard of living.
b.
amount of government spending and its productivity.
c.
total population and its average citizen’s income.
d.
rate of population growth and the extent of its trade with other countries.
5. Economists, like mathematicians, physicists, and biologists,
a.
make use of the scientific method.
b.
try to address their subject with a scientist’s objectivity.
c.
devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories.
d.
All of the above are correct.
6. Which of the following is an example of a positive, as opposed to normative, statement?
a.
Inflation is more harmful to the economy than unemployment is.
b.
If welfare payments increase, the world will be a better place.
c.
Prices rise when the government prints too much money.
d.
When public policies are evaluated, the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency.
7. Which of the following is an example of a normative, as opposed to positive, statement?
a.
Universal health care would be good for U.S. citizens.
b.
An increase in the cigarette tax would cause a decrease in the number of smokers.
c.
A decrease in the minimum wage would decrease unemployment.
d.
A law requiri.
Chapter 1 57.What is the difference between recession and de.docxsleeperharwell
Chapter 1
57.
What is the difference between recession and depression in an economy? Provide an example of depression from the real world that has hit the global economy.
Use the following to answer question 58:
Answer: When there is a mild fall in the gross domestic product (GDP) of an economy over a period of time it leads to recession in the economy. If the intensity of the fall in GDP is severe over a period of time, then it turns into a depression. Recession is cyclic in nature; that is, it repeats itself over a period of time in an economy. A famous example of depression is that of the Great Depression of the 1930s that occurred in the United States and affected the global economy. Even the financial crisis of 2008-2009 in the United States was very much reminiscent of the Great Depression.
58.
Refer to the following graph and identify the years for which Country A and Country B experienced recession.
Country A experienced its recession during 2003 and its early recovery during 2004. Country B experienced its first recession during 2002 and its early recovery in 2003. Country B experienced a second recession in 2007.
59.
Why do we call macroeconomics an imperfect science? Explain.
The study of macroeconomics depends mainly upon the historical data on different economies. Macroeconomists analyze these data to explain changes occurring in different economic parameters (income, prices, unemployment, etc.) and formulate policies. Additionally, macroeconomic studies cannot be conducted in controlled experiments, as in biology or chemistry, for example. In this way, macroeconomists are similar to weather forecasters.
60.
Are the terms “market clearing” and “equilibrium” one and the same? Explain.
Yes, both terms represent the same notion: the balance between supply and demand. It is the balancing point at which everything that is produced gets sold and fulfills the entire demand. Thus, if all other things remain constant, then there is no tendency to change the quantity supplied and demanded at this point.
61.
Do you agree with the statement, “macroeconomics rests on the foundation of microeconomics”? Explain.
Macroeconomics involves studying the aggregate of economic variables related to individual decision making parameters, which are microeconomic (think of individuals' expenses, investments, etc.). That is to say, the total expenditure in an economy is the aggregate (sum) of all the expenditures done by all consumers in that economy, or the total investment done in an economy is the aggregate (sum) of all individual investments done by firms in that economy. This reflects that macroeconomic study rests on the foundation of microeconomics.
62.
Give two examples of macroeconomic variables and microeconomic variables.
The income of your father is a microeconomic variable, while the gross domestic product (GDP) of your country is a macroeconomic variable. The money your father saves in the bank is a microeconomic va.
1. The short-run Phillips Curve is a curve that shows the relat.docxbraycarissa250
1.
The short-run Phillips Curve is a curve that shows the relationship between the inflation rate and the pure interest rate when the natural rate of unemployment and the expected rate of inflation remain constant.
True
False
2.
At higher rates of inflation, unemployment is lower in the short-run Phillips Curve; in the long run, however, inflation has no effect on unemployment.
True
False.
3.The Federal Funds Market is actually monitored and manipulated by the Federal Reserve, but individual investors can enter the market and borrow funds if desired.
True
False
4.
One of the three main tools of the Federal Reserve is fiscal policy.
True
False
5.
The Federal Reserve's Reserve Requirement ratio can reduce the monetary base and thus the money supply.
True
False
6.
If the Federal Reserve wants to reduce interest rates and increase the velocity of money, it can utilize the open market operations tool by selling government bonds to member banks.
True
False
7.
The use of money as a medium of exchange represents the most important service that money renders.
True
False
8.
Keynes advocated government deficit spending during recessions, especially if full employment was not yet reached.
True
False
9.
ommercial banks and credit unions can create money and credit.
True
False
10. M1 includes currency, checkable deposits, and traveler's checks, but M2 does not include M1 in any way.
11.
The imposition of a tariff on foreign goods is more likely to decrease producer surplus of the domestic firms competing with those foreign firms on whom the tariff is imposed.
True
False
12.
When an American purchases a German good or invests in Germany, Euros currency is supplied and U.S. dollars are demanded.
True
False
13.
The main goal of the Federal Reserve is the unemployment rate.
True
False
14.
If the economy is in long run economic equilibrium, at potential GDP, and full employment has been reached as well, if there is an outward shift in aggregate demand, we can expect damaging inflation to start to occur and the government to seek contractionary fiscal and monetary options.
True
False
15.
If the MPC is .9, and government purchases increase by $6,000, real GDP demanded will:
a.
decrease by $60,000
b.
decrease by $6,000
c.
increase by $60,000
d.
increase by $6,000
e.
increase by $5,000
17.
Fiscal policy consists of the executive branch's decisions to tax and spend. If the economy is in an expansionary mode just coming out of a recession, in regards to aggregate demand and aggregate supply, we can assume that a tax hike will lead to
a.
the economy expanding even more as a result.
b.
aggregate demand and supply to shift inward.
c.
aggregate supply to shift inward.
d.
aggregate demand to shift inward.
e.
no changes will occur.
18.
The natural rate of unemployment is
a.
when the economy is at potential GDP.
b.
when the unemployment rate is at full employment.
.
Your company name
Your name
Instruction Page
1. On the cover page
a. Replace ‘Your Company Name’ with your company name, city and state
b. Replace ‘Date’ with the date of the plan
c. Consider inserting graphics:
i. Company logo
ii. Insert a picture or graphic of your product or service
iii. Photo of your facilities
iv. Photo of your location
2. Replace ‘ENTER YOUR COMPANY NAME HERE’ with your company name on the page with the Statement of Confidentiality & Non-Disclosure
3. Open the document header and enter your company name and your name
4. Update the table of contents as you build your business plan.
Delete this page before submitting your business plan.
Business Plan
Your Company Name Here
City, State
Date
Statement of Confidentiality & Non-Disclosure
THIS BUSINESS PLAN CONTAINS PROPRIETARY AND CONFIDENTIAL INFORMATION.
All data submitted to the receiver is provided in reliance upon its consent not to use or disclose any information contained herein except in the context of its business dealings with ENTER YOUR COMPANY NAME HERE (Company). The recipient of this document agrees to inform its present and future employees and partners who view or have access to the document's content of its confidential nature.
The recipient agrees to instruct each employee that they must not disclose any information concerning this document to others except to the extent such matters are generally known to, and are available for use by, the public. The recipient also agrees not duplicate or distribute or permit others to duplicate or distribute any material contained herein without the Company's express written consent.
The Company retains all title, ownership and intellectual property rights to the material and trademarks contained herein, including all supporting documentation, files, marketing material, and multimedia.
Disclaimer Notice
THIS BUSINESS PLAN IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.
The Company reserves the right, in its sole discretion, to reject any and all proposals made by or on behalf of any recipient, to accept any such proposals, to negotiate with one or more recipients at any time, and to enter into a definitive agreement without prior notice to other recipients. The company also reserves the right to terminate, at any time, further participation in the investigation and proposal process by, or discussions or negotiations with, any recipient without reason.
BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BE BOUND BY THE AFOREMENTIONED STATEMENT.
Table of Contents
Introduction and Overview 6
Executive Summary 6
Objectives 6
Mission 6
Keys to Success 6
Company Summary 6
Company Ownership 6
Start-up 6
What We Sell 7
Summary 7
Our products 7
Our services 7
Market Analysis and Sales Forecast 8
Market and Sales Forecast Summary 8
Total Market 8
Target Market Summar.
Your Company NameYour Company NameBudget Proposalfor[ent.docxhyacinthshackley2629
Your Company Name
Your Company Name
Budget Proposal
for
[enter years here]
BUSN278
[Term]
Professor[name]
DeVry University
Table of Contents
Section
Title
Subsection
Title
Page Number1.0Executive Summary
2.0Sales Forecast
2.1Sales Forecast
2.2Methods and Assumptions
3.0Capital Expenditure Budget
4.0Investment Analysis
4.1Cash Flows
4.2NPV Analysis
4.3Rate of Return Calculations
4.4Payback Period Calculations
5.0Pro Forma Financial Statements
5.1Pro Forma Income Statement
5.2Pro Forma Balance Sheet
5.3Pro Forma Cash Budget
6.0Works Cited
7.0Appendices
7.1Appendix 1: [description]
7.2Appendix 2:
[description]
(Please put page numbers in the last column of the table of contents above, because they apply to your finished assignment. Do this after your project is complete. Remove this text and all text that is in italics in this template when finished with your project.)
(Also, please submit your Excel spreadsheet that shows your supporting calculations.)
1.0 Executive Summary
The first paragraph of this executive summary should give a brief description of the business to which this budget applies. Very briefly describe the products and services of this company, the geography or demographics of the customers it serves, and why people purchase the main product of this business. Much or all of this information will be found in the business profile provided to you. Please use your own words, and please do not simply copy and paste the explanation in the course materials. Make assumptions if necessary.
Also, provide a second paragraph that describes how the budget supports the company’s strategy.
Finally, provide a third paragraph in which you summarize the key points from your budget, including the planning horizon; the amount of up-front investment; the NPV, payback, and IRR of the project; and key figures from your income statement, cash budget, and balance sheet.
Remember, this is not a thesis or introduction of what you will talk about—it contains the major, specific content of each section. The second and third paragraphs should be written after you have completed all other sections of this template.
As you complete sections of this template, please remove all italicized text in all sections of this template and replace it with your own text or you will lose points!
2.0 Sales Forecast
Briefly introduce the sales forecast section.
2.1 Sales Forecast
Here you should include a simple table showing the years and the total sales for each year, along with a brief explanation of why sales are expected to rise, fall, change, or stay the same in certain years. Provide a brief explanation of the sales forecast, indicating why you expect sales to rise or fall during the planning horizon. Your explanation should be consistent with the trends and changes in sales found in your table.
Year 1
Year 2
Year 3
Year 4
Year 5
Sales
2.2 Methods and Assumptions
Here you should describe how you arrived at your sales forecast in sect.
Your company recently reviewed the results of a penetration test.docxhyacinthshackley2629
Your company recently reviewed the results of a penetration test on your network. Several vulnerabilities were identified, and the IT security management team has recommended mitigation. The manager has asked you to construct a plan of action and milestones (POA&M) given that the following vulnerabilities and mitigations were identified:
The penetration test showed that not all systems had malware protection software in place. The mitigation was to write a malware defense process to include all employees and retest the system after the process was implemented.
The penetration test indicated that the data server that houses employee payroll records had an admin password of “admin.” The mitigation was to perform extensive hardening of the data server.
The penetration test also identified many laptop computers that employees brought to work and connected to the internal network,some of which were easily compromised. The mitigation was to write a bring your own device (BYOD) policy for all employees and train the employees how to use their devices at work.
Complete
the 1- to 2-page
Plan of Action and Milestones Template
. (Must use this template!)
.
Your company wants to explore moving much of their data and info.docxhyacinthshackley2629
Your company wants to explore moving much of their data and information technology infrastructure to the cloud. The company is a small online retailer and requires a database and a web storefront. Currently, only IT is over budget on database maintenance. The initial analysis points to significant cost savings by moving to a cloud environment.
Research
the differences between Infrastructure as a Service (IaaS), Software as a Service (SaaS), and Platform as a Service (PaaS).
Discuss
the differences between IaaS, SaaS, and PaaS. Give an example of the appropriate use of each of the cloud models (Iaas, SaaS, and PaaS).
.
Your company plans to establish MNE manufacturing operations in Sout.docxhyacinthshackley2629
Your company plans to establish MNE manufacturing operations in South Korea. You have been asked to conduct a cultural audit focusing on leadership behaviors of South Korea. The results of your report will be used for internal training for plant managers due to be reassigned to work with South Korean managers in a few months. You are aware of a high-collectivism culture with a Confucian code of ethical behavior in South Korea. What kinds of South Korean leadership behaviors would you expect to include in your report? Describe these in terms of interaction between the U.S. and Korean managers as well as interaction between Korean leader-followers.
By
Saturday, June 21, 2014
respond to the discussion question assigned by the faculty. Submit your response to the appropriate
Discussion Area
. Use the same
Discussion Area
to comment on your classmates' submissions and continue the discussion until
Wednesday, June 25, 2014
.
Comment on how your classmates would address differing views.
.
Your company just purchased a Dell server MD1420 DAS to use to store.docxhyacinthshackley2629
Your company just purchased a Dell server MD1420 DAS to use to store databases. the databases will contain all employee records and personal identified information (PII). You know that databases like this are often targets. The Chief Information Officer has asked you draft a diagram for the server and 3 connected workstations. The diagram must use proper UML icons.
- Research:
network topology to protect database server (Google Term and click images)
-
Create a diagram using proper UML
icon, the protects the server and the 3 workstations.
-
Include where Internet access will be located
, firewall and other details.
- The
body (Min 1 page)
- Provide a summary after the diagram how and why you topology should protect the database.
.
your company is moving to a new HRpayroll system that is sponsored .docxhyacinthshackley2629
your company is moving to a new HR/payroll system that is sponsored by a firm called Workday.com. You have been asked to oversee the stakeholder management aspects of this project. Identify some of the key stakeholders at your company and describe how you plan to keep them engaged during your year-long project. Be sure to include the appropriate methods since not all of your stakeholders are located at the HQ office in Herndon, VA.
.
Your company is considering the implementation of a technology s.docxhyacinthshackley2629
Your company is considering the implementation of a technology solution to address a business problem. As a member of the IT team for a manufacturing company, you were asked to select a product to address the identified needs, informing the stakeholders about its fit to the identified needs, and providing implementation details. Several past process changes have been unsuccessful at implementation and user acceptance. You will create two artifacts that communicate product information tailored to meet the needs of each of the following stakeholder groups:
• Audience 1: executive leadership of the organization, such as the CIO, CFO, etc.
• Audience 2: cross-functional team, including members from IT who will be implementing the product
.
Your company is a security service contractor that consults with bus.docxhyacinthshackley2629
Your company is a security service contractor that consults with businesses in the U.S. that require assistance in complying with HIPAA. You advertise a proven track record in providing information program security management, information security governance programs, risk management programs, and regulatory and compliance recommendations. You identify vulnerabilities, threats, and risks for clients with the end goal of securing and protecting applications and systems within their organization.
Your client is Health Coverage Associates, a health insurance exchange in California and a healthcare covered entity. The Patient Protection and Affordable Care Act (ACA) enables individuals and small businesses to purchase health insurance at federally subsidized rates. In the past 6 months, they have experienced:
A malware attack (i.e., SQL Injection) on a critical software application that processed and stored client protected health information (PHI) that allowed access to PHI stored within the database
An internal mistake by an employee that allowed PHI to be emailed to the wrong recipient who was not authorized to have access to the PHI
An unauthorized access to client accounts through cracking of weak passwords via the company’s website login
Health Coverage Associates would like you to
develop
a security management plan that would address the required safeguards to protect the confidentiality, integrity, and availability of sensitive data from the attacks listed above and protect their assets from the vulnerabilities that allowed the attacks to occur.
Write
a 1- to 2-page high-level executive summary of the legal and regulatory compliance requirements for Health Coverage Associates executives. The summary should provide
Accurate information on the HIPAA requirements for securing PHI
FISMA and HIPAA requirements for a security plan
Scope of the work you will perform to meet the Health Coverage Associates’ requests
Compile
a 1-to 2-page list of at least 10 of the CIS controls that provide key alignment with the administrative (policies), physical (secured facilities), and technical safeguards required under HIPAA to protect against the attacks listed above. Include corresponding NIST controls mapped to the selected CIS controls.
Write
a 1- to 2-page concise outline of the contents of the security management plan. Include
Policies Health Coverage Associates will need to manage, protect, and provide access to PHI
The recommended risk management framework Health Coverage Associates should adopt
Key elements Health Coverage Associates should include in its plan of actions and milestones
Cite
all sources using APA guidelines.
.
Your company has just sent you to a Project Management Conference on.docxhyacinthshackley2629
Your company has just sent you to a Project Management Conference on the latest trends in project scope management. When you return to work, you will have to provide a report at the staff meeting on what you learned.
In your initial post
, share some of the trends that you heard at the conference. Conduct research and use sources to support your findings. Be sure to acknowledge any sources you use.
.
Your company has designed an information system for a library. The .docxhyacinthshackley2629
Your company has designed an information system for a library. The project included a new network (wired and wireless), a data entry application, a Web site, database and documentation.
Design a generic test plan that describes the testing for an imaginary system, make sure to address unit, integration and system testing.
Create a one-page questionnaire to distribute to users in a post-implementation evaluation of a recent information system project. Include at least 10 questions that cover the important information you want to obtain.
.
Your company has had embedded HR generalists in business units for t.docxhyacinthshackley2629
Your company has had embedded HR generalists in business units for the past several years. Over that time, it has become more costly and more difficult to maintain standards, and is a frustration for business units to have that budget “hit.” The leadership has decided to move to a more centralized model of delivering HR services and has asked you to evaluate that proposition and begin establishing a project team to initiate the needed changes. The project team is selected, and you must now provide general direction.
.
Your company You are a new Supply Chain Analyst with the ACME.docxhyacinthshackley2629
Your company: You are a new Supply Chain Analyst with the ACME Corporation. We design specialty electronics that are components in larger finished goods such as major appliances, automobiles and industrial equipment. Manufacturing is outsourced to low-cost suppliers due to the significant labor contribution and closeness to electronic component suppliers.
Your product: ACME Corp. designs a leading-edge family of devices branded as “Voice Assistants.” These are add-on boxes that many OEMs are using as plug-and-play devices in a wide variety of Internet-of-Things products. They are also sold directly to consumers as after-market items, but only for IoT devices that were built with our proprietary data-port.
Figure 1: Product line of ACME Corp Voice Assistant IoT Add-on Boxes
Your task: Your Chief Supply Chain Officer (CSCO) is requesting a review of supplier-to-customer processes as related to recent growth in our company and increasing demand for faster responsiveness to customers. One alternative is to decentralize our inventory into regional Distribution Centers; however, our ERP system is currently limited in the data available to make some of these decisions – and the output reports are very antiquated. Starting off the process, the CSCO directed that your Analysis Team use population data to pro-rate our national sales data as a starting point. For this analysis, you are asked to focus only on the flagship product, Voice Assistant IoT Add-on Box, 4GB, SKU #123-456789. The challenge is now yours to complete some computations and interpret the results!
Your data: A detailed report from your ERP system along with secondary data from the U.S. Census Bureau (reference: https://www.census.gov/programs-surveys/popest/data/data-sets.html) is provided. (Note: Sales to Alaska, Hawaii and Puerto Rico are handled by a 3PL provider and therefore are NOT part of this analysis.) The consolidated EXCEL® file has incorporated several tasks already performed by the Analysis Team --- sort, cleanse, inventory optimization, etc. Other tasks remain for your team.
Detailed Requirements: Prepare a formal report summarizing your results and providing recommendations that are supported by facts. The required layout follows:
A. Supply Chain Management:
a. Identify a single key supplier and a single key customer for your product, including a brief description of their product.
b. Identify the proper type of business relationship that your company should have with the supplier and customer from Part A, above, then briefly describe the data that you would share with them.
c. When implementing Supply Chain Management with your #1 key supplier for the first time, create a timeline that lists each of the six SCOR processes in the order that you recommend implementation; include process leader (by job title), primary contact at supplier/customer (by job title), and duration to implement.
d. Briefly describe each of the four enablers of supply chain .
Your company has asked that you create a survey to collect data .docxhyacinthshackley2629
Your company has asked that you create a survey to collect data on customer satisfaction related to their health care experience at your hospital.
Assignment Details (4-5 pages)
Please Add Title to page
Page 1:
A brief summary of the health care issue/topic (wait time, medication errors, etc.)
Number and access of source to sample and population
Limitations of the survey (parameters)
Time line for completion of survey
Page 2: Survey Questions
Survey questions: Limit the questions to 10
Page 3: Compilation of Data
Time line for assessment and evaluation of data
Challenges faced during this process
Page 4: Results and Conclusions
Results of study
Conclusions and potential value of the findings
Reference page
Deliverable Length
4–5 pages
Title and reference pages
.
"Your Communications Plan"
Description
A.
What is your challenge or opportunity?
The topic I would like to present is pitching an Project idea for some investor to invest in my Women’s Resources center.(Voices Of Women)
B.
.
Why is this professionally important to you?
Goal
A.
What goal or outcome do you want to achieve with this communication?
I.
Is it clear, concise, and actionable?
Audience
A.
Who is you target audience?
What are the professional positions of the audience?
I.
What demographic characteristics will the audience comprise?
II.
What is your relationship to the audience?
III.
What background knowledge and expertise does the audience have?
IV.
What does the audience know, feel about, and expect concerning this communication?
V.
What preconceptions or biases do you possess that might prevent you from building rapport with your audience?
B.
What information is available about your audience?
A.
b.
c.
I.
What research/sources will you use to obtain information about the audience?
II.
What conclusions have you been able to draw about the audience?
C.
What tone will you
"Your Communications Plan"
Description
A.
What is your challenge or opportunity?
The topic I would like to present is pitching an Project idea for some investor to invest in my Women’s Resources center.(Voices Of Women)
B.
.
Why is this professionally important to you?
Goal
A.
What goal or outcome do you want to achieve with this communication?
I.
Is it clear, concise, and actionable?
Audience
A.
Who is you target audience?
What are the professional positions of the audience?
I.
What demographic characteristics will the audience comprise?
II.
What is your relationship to the audience?
III.
What background knowledge and expertise does the audience have?
IV.
What does the audience know, feel about, and expect concerning this communication?
V.
What preconceptions or biases do you possess that might prevent you from building rapport with your audience?
B.
What information is available about your audience?
A.
b.
c.
I.
What research/sources will you use to obtain information about the audience?
II.
What conclusions have you been able to draw about the audience?
C.
What tone will you use to convey your message?
I.
Is the setting casual or formal?
II.
Is the communication personal or impersonal?
Key Message
A.
What is the primary message you must convey to your audience?use to convey your message?
I.
Is the setting casual or formal?
II.
Is the communication personal or impersonal?
Key Message
A.
What is the primary message you must convey to your audience?
.
Your community includes people from diverse backgrounds. Answer .docxhyacinthshackley2629
Your community includes people from diverse backgrounds. Answer the following questions related to how culture affects nutrition.
1. How does your culture shape decisions that you make about nutrition? (Culture includes history, values, politics, economics, communication styles, beliefs, and practices.)
2. Describe at least 1 different cultures present at your community. How do these cultures impact food choices?
3. Describe how you interact with someone from another culture related to diet. Provide specific examples.
4. Assume that you are preparing a Thanks Giving dinner for a group of your classmates that represent a variety of cultures. Describe how you will prepare the menu and set the table. Include how you will address food safety at the picnic.
Explore ways to address the problem of food insecurity in your community.
1. What programs are available to meet the nutrition needs of individuals in the area?
2. What types of options exist in the area to purchase food?
3. What role do you believe society should take to ensure that individuals have access to adequate healthy food?
4. What do you see as your role in the community related to proper nutrition?
.
Your Communications Plan Please respond to the following.docxhyacinthshackley2629
"Your Communications Plan"
Please respond to the following:
Provide a brief overview of your Strategic Communications Plan. Include a short description for each of the following
in bullet point format
:
- The purpose of the communication
- Your goal
- Audience
- Key Message
- Supporting Points
- Channel Selection
- Action Request
Note:
Remember, feedback is a powerful and essential tool. Thoughtful, useful feedback is specific. It combines suggestions for improvement with the recognition of good ideas. When you offer feedback, you should contribute new ideas and new perspectives to help your peers learn and move forward.
.
Your Communication InvestigationFor your mission after reading y.docxhyacinthshackley2629
Your Communication Investigation
For your mission after reading your assignment, you are to take yourself and a notebook into your environment and observe human interaction for 15 minutes noting two persons and their interpersonal exchange(s) but don't join the conversation. This can be a place of your choosing but describe it in some (not complete) detail. Note significant features of the communication environment. Using terms from our textbook write down your observations.
Identify the elements from our Transactional model
Briefly describe the transactional nature of the communication of the persons you are observing. Do you see attempts at ‘communicare’ of "making something common"? What is it that you saw that led you to this conclusion? Sender? Receiver? Message?
Report back to us
Describe the communication behavior you observed in a brief but specific report. What got your attention? Why? What elements of the transactional communication model did you see as you were observing their behavior? What about your 'decoding' of the scene? Do you think you had any personal 'noise' or bias that may have affected how you saw or interpreted the scene?
Post your report to the Discussion Board and then read all of the posts
Post your replies to two classmates and using your skills in perception take a position of empathy
.
Explain how you perceive the scene your classmate reports and take a perspective demonstrating empathy as defined in our textbook in chapter 2 (page 52) putting yourself in the place of either or both persons your classmate observed. What you can learn from the description of the scene reported by your classmate and you considering Empathy, Perception, and observed Communication. More through reports and replies will receive higher scores.
.
Your Communications PlanFirst step Choose a topic. Revi.docxhyacinthshackley2629
"Your Communications Plan"
First step: Choose a topic. Review the Communication Challenge Topics and choose one that is relevant and interesting to you. Make sure to review the examples and anecdotes that follow each topic in this document. You can also find this information under the Course Info tab.
Second step: Review the Strategic Communication Plan example. Your plan should mirror this example in format and length. You can also find this example under the Course Info tab.
Third step: In this discussion, please respond to the following:
Part 1: What is your topic?
Part 2: Provide a rough draft of your Strategic Communications Plan for peer review and instructor feedback. Your draft should include enough detail that we can provide strong constructive feedback and input.
COM510 ASSIGNMENT COMMUNICATION CHALLENGE TOPICS
In the world of business, we can create opportunities through strategic communication. Throughout our professional careers, there are key events that raise the stakes of our communications approach.
WHAT YOU’LL DO
1) Review the Communication Challenge Topics and their accompanying case study examples.
2) Select 1 topic that is professionally relevant for you.
3) Use for your COM510 assignments (the topic you have selected, not the case study example).
Note: If there is another challenge or current opportunity in your professional life that is more relevant for you, you may choose a topic that is not on this list. Keep in mind that the communication challenge you select must in- clude both written and verbal communication elements to meet the needs of this course. (Your professor must approve your selection before you proceed.)
1
Examples of each scenario are provided to demonstrate what thoughtful, professional communication would look like in each of these situations. These are only examples and should not be used for completing the assignment. You can create and establish all necessary assumptions. The scenario is yours to explain.
COMMUNICATION CHALLENGE TOPICS
Choose one of the following topics for your assignments.
• Internal Promotion Opportunity
• New Job Opportunity Interview
• Running a Meeting
• Coaching Your Direct Employees
• Pitching a Project Idea
INTERNAL PROMOTION
Seeking a promotion from within your company is one opportunity in which strategic communication could mean the difference be- tween success and failure. If you choose this scenario, you’ll need to create both a written and a verbal (audio or video) communica- tion. These elements should explain why you are the right person for the internal promotion while addressing potential questions you might need to answer as part of the process.
Things to Consider
• Have you checked the listings on your company’s job board lately?
• Is there a new position you would like to secure?
• Have you taken on more responsibility at work?
• Have your outcomes been positive?
• Do your job title and job description match what you do? .
Your coffee franchise cleared for business in both countries (Mexico.docxhyacinthshackley2629
Your coffee franchise cleared for business in both countries (Mexico, and China). You now have to develop your global franchise team and start construction of your restaurants. . You invite all of the players to the headquarters in the United States for a big meeting to explain the project and get to know one another since they represent the global division of your company.
You are concerned with the following two issues. Substantively address each in a two-part paper, applying Beyond the Book, MUSE, Intellipath and library resources to support your reasoning
Part 1: Effective communication with participants
What are the implications of the cultural variables for your communication with the team representative from each country in the face to face meeting?
Address Hall’s high and low context regarding verbal and non-verbal communication. The United States is a low context culture, while each country is high context.
Tip: Write at least one substantive paragraph for each country
Video on Hall's high and Low Context Communication
Part 2: Effective communication among participants
What are examples of barriers and biases in cross-cultural business communications that may impact the effectiveness of communication among the meeting participants and in potential negotiations?
What are some of the issues you should be concerned about regarding verbal and nonverbal communication for this group to avoid misinterpretations and barriers to communication?
Please submit your assignment.
.
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
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11-1 Macroeconomics Instructor Jen Dinsmore Hanson .docx
1. 11-1
Macroeconomics
Instructor: Jen Dinsmore Hanson
Homework Assignment
Chapter 11
Multiple Choice Questions
1. Say's law
A. was a basic pillar of classical economics.
B. was a basic pillar of Keynesian economics.
C. was formulated during the Great Depression.
D. proves that we can never have full employment.
2. Which question did John Maynard Keynes pose for the
classical economists?
A. What if their policies led to inflation?
B. What if savings and investment were not equal?
2. C. What if government intervention did not cure a recession?
D. John Maynard Keynes posed none of these questions
3. At equilibrium GDP
A. Savings = investment, but aggregate demand does not equal
aggregate supply.
B. Savings = investment and aggregate demand = aggregate
supply.
C. Savings does not equal investment and aggregate demand
does not equal aggregate supply.
D. Savings does not equal investment, but aggregate demand =
aggregate supply.
4. Laissez-faire economics was advocated by
A. both Keynes and the classicals.
B. neither Keynes nor the classicals.
C. the classicals, but not by Keynes.
D. Keynes, but not by the classicals.
5. When the average price level in the United States, relative to
the average price levels in
other countries, rises, this tends to
3. A. raise imports and exports.
B. lower imports and exports.
C. raise imports and lower exports.
D. lower imports and raise exports.
6. According to the classicals, our economy can produce beyond
the full employment output
A. only in the short run.
B. only in the long run.
C. in both the short run and the long run.
D. in neither the short run nor the long run.
11-2
7. Keynes and the classicals used _____ aggregate demand and
supply apparatuses and came
to _____ conclusions.
A. the same; the same
B. different; different
C. the same; different
D. different; the same
4. 8. John Maynard Keynes
A. agreed with classical writers that strong automatic pressures
drive market economies to full
employment.
B. focused on attaining the long-run macroeconomic goal of
high, but stable economic
growth.
C. argued that a market economy might become stuck in a short-
run equilibrium in which
substantial capital and labor lay idle.
D. argued that short-run equilibrium occurs only at full
employment.
9. The notion that everything the economy produces is
purchased
A. sums up Say's law.
B. can be restated as "demand creates its own supply."
C. refers to the real balance effect.
D. was a critical assumption Keynes made in explaining the
worldwide depression of the
1930s.
10. If the economy is in the vertical portion of the AS curve,
5. what will be the effect of an
increase in the price level on output produced?
A. Output will increase at a very rapid rate
B. Output will not change
C. Output will only slightly increase
D. Output change cannot be predicted from information given
11. The wealth or real balances effect indicates that
A. An increase in the price level will increase the demand for
money, increase interest rates,
and reduce consumption and investment spending
B. A lower price level will decrease the real value of many
financial assets and therefore
cause a decline in spending
C. A higher price level will increase the real value of many
financial assets and therefore
cause a decline in spending
D. A higher price level will decrease the real value of many
financial assets and therefore
cause a decline in spending
12. Classical economists and monetarists perceive
6. A. investors' expectations about returns on investment as
unstable.
B. large investment swings as responses to small changes in
interest rates.
C. that the best way to cure unemployment is to start a war.
D. that the proper cure for unemployment is active fiscal policy.
11-3
13. Classical economists believed that
A. if saving exceeded investment, prices and interest rates
would rise as business accumulated
unwanted inventories.
B. flexible prices and wages could not restore an economy to
full employment if the interest
rate were rigid.
C. flexible interest rates, wages, and prices would assure full
employment.
D. voluntary unemployment reflected economic inefficiency.
E. all unemployment was involuntary.
14. The curve showing the amount of real output, or real GDP,
that will be made available by
7. sellers at various price levels is called the
A. aggregate demand curve.
B. real gross domestic investment curve.
C. aggregate supply curve.
D. Keynesian cross.
E. aggregate individual demand curve.
15. Which of the following is incorrect?
A. As the American average price level rises, American goods
become relatively more
expensive so that our exports fall and our imports rise.
B. As the average price level falls, the interest rate declines,
and interest-rate sensitive
spending increases.
C. When the average price level increases, real balances
increase, businesses and households
find themselves wealthier and therefore increase their spending.
D. An increase in aggregate supply tends to increase real
domestic output and reduce the
average price level.
16. The aggregate demand curve shows a(n)
8. A. positive relationship between prices and quantities.
B. inverse relationship between the price level and the
aggregate quantity demanded.
C. independent relationship between the price level and the
aggregate quantity demanded.
D. inverse relationship between the product price and the
quantity of a good demanded.
17. The Keynesian point of view suggests that
A. supply creates its own demand.
B. demand creates its own supply.
C. the market is always at equilibrium.
D. full employment is the natural result of market forces.
E. wage and price controls can halt deflationary pressures.
18. Which of the following will cause a change in aggregate
demand?
A. A change in consumer demand
B. A change in the demand for investment goods
C. A change in government spending
D. All of the choices will cause a change in aggregate demand.
9. 11-4
19. If the aggregate supply curve is upward sloping, an increase
in aggregate demand will
A. increase real GDP at a constant level of prices.
B. reduce real GDP but increase the price level.
C. increase real GDP but reduce the price level.
D. reduce both real GDP and the price level.
E. increase both real GDP and the price level.
20. Real money balances
A. refer to the amounts of nominal money that individuals hold.
B. are computed by deflating nominal money assets by the
average price level.
C. refer to the amounts of American money that an individual
holds relative to gold or foreign
currencies.
D. are measured by currency holdings rather than holdings in
checking accounts.
E. are identical to nominal money balances in the long run.
21. The classical macroeconomic model argues that the
economy has built-in forces that
10. automatically eliminate unemployment and quickly move the
economy to its full employment
level of real GDP. Which assumption is critical to this
argument?
A. Rigid wages and prices
B. Flexible wages and prices
C. Natural rate of unemployment
D. Profit motive
E. None of the choices are correct.
22. The long-run aggregate supply curve, according to the
classical model,
A. is vertical at full employment GDP.
B. slopes gently upward.
C. is horizontal at the equilibrium price level.
D. may be downward sloping.
E. slopes steeply upward.
11-5
23. Curve XY represents ____________.
11. A. short-run aggregate demand
B. long-run aggregate demand
C. short-run aggregate supply
D. long-run aggregate supply
24. Curve YZ represents ____________.
A. short-run aggregate demand
B. long-run aggregate demand
C. short-run aggregate supply
D. long-run aggregate supply
25. Aggregate demand will decrease when there are
A. decreases in government spending.
B. increases in consumer and business confidence.
C. increases in inflationary expectations.
D. decreases in the price level.
E. declines in the demand for money.
26. The foreign purchases effect suggests that a decrease in the
American price level relative
to those in other countries will
12. A. shift the aggregate demand curve leftward.
B. shift the aggregate supply curve leftward.
C. decrease American exports and increase American imports.
D. increase American exports and decrease American imports.
11-6
27. If aggregate demand shifts from AD1 to AD2,
A. both output and the price level will rise.
B. output will rise and the price level will fall.
C. output will rise and the price level will remain the same.
D. both output and the price level will fall.
E. output will fall and the price level will rise.
28. If aggregate demand shifts from AD2 to AD4,
A. both output and the price level will rise.
B. output will rise and the price level will fall.
C. output will rise and the price level will remain the same.
D. both output and the price level will fall.
E. output will fall and the price level will rise.
13. 29. If aggregate demand shifts from AD4 to AD5,
A. output will rise and the price level will fall.
B. output will fall and the price level will rise.
C. neither output nor the price level will change.
D. the price level will rise and output will remain unchanged.
E. output will rise and the price level will remain unchanged.
30. A self-regulating market
A. eliminates shortages or surpluses through price changes.
B. can eliminate shortages quickly, but eliminates surpluses
slowly.
C. renders Say's law invalid.
D. occurs only in labor markets.
E. occurs only in credit markets.
31. Suppose the nation is in a recession. As a result, the current
macroeconomic equilibrium
occurs along the flat portion of the aggregate supply curve. A
moderate increase in aggregate
demand is likely to
A. increase the equilibrium price level with little effect on
equilibrium real GDP.
14. B. increase equilibrium real GDP with little effect on the price
level.
C. cause the price level to fall.
D. decrease employment.
11-7
32. If the aggregate demand curve shifts to the right,
A. the economy is in equilibrium.
B. people are willing to buy less real output at every price level.
C. people are willing to buy more real output at every price
level.
D. people are willing to buy more real output at a lower price
level.
33. According to classical macroeconomic theory, the flexible
interest rate
A. is the incentive that encourages businesses to obtain credit.
B. will tend to fall when the quantity of credit demanded
exceeds the quantity of credit
supplied.
C. will tend to rise when the supply of credit exceeds the
demand for credit.
15. D. ensures that saving cannot exceed investment spending for
extended periods of time.
34. Adherents of Say's law maintained that
A. demand created its own supply.
B. people work in order to earn income to spend on
consumption.
C. people work in order to earn income to save.
D. demand is unaffected by supply.
35. According to Keynes, the primary cause of large-scale
unemployment is
A. high prices.
B. low prices.
C. high exports.
D. low exports.
E. inadequate aggregate demand.
36. When we draw an aggregate demand curve, what do we put
on the vertical axis?
A. The total quantity of goods and services demanded
B. The full employment output
C. The quantity of money
16. D. The price level
37. Which of the following statements best reflects Keynes'
view of the aggregate supply
curve?
A. It tends to be vertical, because the economy naturally tends
toward equilibrium positions of
full employment.
B. It tends to be upward sloping (but not vertical), because as
we try to produce more output
out of our given resources, some labor has to work overtime at
higher pay, driving up costs
and prices.
C. It tends to be horizontal during periods when substantial
amounts of resources are
unemployed.
D. It tends to slope downward and to the right reflecting
people's natural tendency to postpone
purchases when they lose their jobs.
E. None of the choices are true of Keynes' view of the aggregate
supply curve.
17. 11-8
38. The real wealth effect provides a partial explanation for why
the aggregate demand curve
slopes downward. Which of the following statements best
explains the real wealth effect?
A. At a lower price level domestically produced items are
relatively less expensive than
foreign goods and therefore are in greater demand.
B. At a lower price level the real interest rate tends to be lower,
and thus the quantity of
investment goods demanded is larger.
C. At a lower price level consumers will buy less because of a
reduction in the real money
supply.
D. At a lower price level the purchasing power of accumulated
savings is larger, and thus
consumers will purchase more goods.
39. If the rate of interest did not equate saving and investment
and total output was greater
than total spending, the classical economist argued, competition
would tend to force
A. product and resource prices down.
18. B. product prices up and resource prices down.
C. product prices up and resource prices up.
D. product prices down and resource prices up.
40. The major difference between the Keynesian model and the
classical theory of
employment is that
A. the interest rate will not always equalize savings and
investment.
B. not everything produced will necessarily be purchased.
C. saving and investing are done by different people for
different reasons.
D. wages and prices are assumed to be flexible downwards.
41. According to Keynes, at equilibrium, aggregate demand will
always equal which of the
following?
A. Aggregate supply
B. C + S
C. C + I
D. All of the choices are correct.
42. Assume the aggregate demand curve intersects the aggregate
supply curve in its
19. intermediate range. A decrease in the aggregate supply curve
will
A. increase the price level and decrease real GDP.
B. decrease the price level and increase real GDP.
C. increase both the price level and real GDP.
D. decrease both the price level and real GDP.
11-9
43. Who said our economy "seems capable of remaining in a
chronic condition of subnormal
activity for a considerable period without any marked tendency
either toward recovery or
toward complete collapse"?
A. David Ricardo
B. Jean Baptiste Say
C. Wassily Leontief
D. John Maynard Keynes
E. Sidney Greenstreet
44. The classical school
20. A. was the dominant school of economic thought after the Great
Depression.
B. advocated laissez-faire.
C. was mainly concerned with aggregate demand.
D. believed that about half of the money saved would be
invested.
45. Jean Baptiste Say believed in all of the following EXCEPT
that
A. Supply creates its own demand.
B. People work so that they can save.
C. Everything produced in an economy is sold.
D. The normal state of economic affairs is full employment.
46. Each of the following is consistent with the classical theory
EXCEPT
A. wages and prices are flexible.
B. the economy is always at full employment.
C. supply creates its own demand.
D. laissez-faire.
47. Which of the following is true?
A. Keynes asked the question: If supply creates its own demand,
why are we in a worldwide
21. depression?
B. According to Keynes, if savings were greater than
investment, interest rates would fall,
bringing the economy back to full employment.
C. Keynes believed that wages and prices were flexible.
D. Keynes believed the economy was basically stable.
48. The classical school
A. was the dominant school of economic thought until the Great
Depression.
B. was the dominant school of economic thought after the Great
Depression.
C. believed that the economy was basically unstable.
D. believed wages and prices were rigid downwards.
E. All of the choices are true of the classical school.
11-10
49. Keynes believed
A. increases in investment expenditures are due to lower
interest rates.
B. increases in investment expenditures are due to high profit
22. expectations.
C. increases in investment expenditures are due to excessive
funds in the loanable funds
market.
D. since supply creates its own demand, increases in investment
expenditures creates
additional supply and therefore more demand and earnings for
the businesses.
50. What economic events enabled most countries to escape the
Great Recession of 2007-
2009?
A. Interest rates fell because of excess savings.
B. Wage rates declined.
C. Fiscal policy was enacted using tax cuts and/or increases in
government spending.
D. Prices declined.
10.
value:
3.00 points
Problem 4-19 Schedule of cash receipts [LO2]
Watt's Lighting Stores made the following sales projections for
23. the next six months. All sales are credit sales.
March
$
48,000
June
$ 52,000
April
54,000
July
60,000
May
43,000
August
62,000
Sales in January and February were $51,000 and $50,000,
respectively.
Experience has shown that of total sales, 10 percent are
uncollectible, 35 percent are collected in the month of sale, 45
percent are collected in the following month, and 10 percent are
collected two months after sale.
(a)
Prepare a monthly cash receipts schedule for the firm for March
through August. (Omit the "$" sign in your response.)
WATT'S LIGHTING STORES
Cash Receipts Schedule
January
February
26. (b)
Of the sales expected to be made during the six months from
March through August, how much will still be uncollected at the
end of August? How much of this is expected to be collected
later? (Omit the "$" sign in your response.)
Amount
Uncollected
$
Expected to be collected
$
VOLT BATTERY COMPANY
Summary of Cash payments
Dec.
Jan.
Feb.
March
April
May
June
29. 11.
value:
4.00 points
Problem 4-23 Schedule of cash payments [LO2]
The Volt Battery Company has forecast its sales in units as
follows:
January
2,300
May
2,850
February
2,150
June
3,000
March
2,100
30. July
2,700
April
2,600
Volt Battery always keeps an ending inventory equal to 130% of
the next month's expected sales. The ending inventory for
December (January's beginning inventory) is 2,990 units, which
is consistent with this policy.
Materials cost $12 per unit and are paid for in the month
after purchase. Labor cost is $5 per unit and is paid in the
month the cost is incurred. Overhead costs are $13,500 per
month. Interest of $9,500 is scheduled to be paid in March, and
employee bonuses of $14,700 will be paid in June.
(a)
Prepare a monthly production schedule for January through
June.
VOLT BATTERY COMPANY
Production Schedule
Jan.
Feb.
March
April
May
June
July
Forecasted unit sales
32. (b)
Prepare a monthly summary of cash payments for January
through June. Volt produced 2,100 units in December. (Omit
the "$" sign in your response.)
12.
value:
5.00 points
Problem 4-25 Complete cash budget [LO2]
Harry's Carryout Stores has eight locations. The firm wishes to
expand by two more stores and needs a bank loan to do this. Mr.
Wilson, the banker, will finance construction if the firm can
present an acceptable three-month financial plan for January
through March. The following are actual and forecasted sales
33. figures:
Actual
Forecast
Additional Information
November
$ 270,000
January
$ 420,000
April forecast
$ 410,000
December
360,000
February
460,000
March
420,000
Of the firm's sales, 30 percent are for cash and the remaining 70
percent are on credit. Of credit sales, 40 percent are paid in the
month after sale and 60 percent are paid in the second month
34. after the sale. Materials cost 40 percent of sales and are
purchased and received each month in an amount sufficient to
cover the following month's expected sales. Materials are paid
for in the month after they are received. Labor expense is 25
percent of sales and is paid for in the month of sales. Selling
and administrative expense is 25 percent of sales and is also
paid in the month of sales. Overhead expense is $31,500 in cash
per month.
Depreciation expense is $10,700 per month. Taxes of $8,700
will be paid in January, and dividends of $5,500 will be paid in
March. Cash at the beginning of January is $94,000, and the
minimum desired cash balance is $89,000.
(a)
Prepare a schedule of monthly cash receipts for January,
February and March. (Omit the "$" sign in your response.)
HARRY’S CARRY-OUT STORES
Cash Receipts Schedule
November
December
January
February
March
April
Sales
$
$
$
$
$
$
Cash sales
35. Credit sales
Collections in the month
after credit sales)
Collections two months
after credit sales)
Total cash receipts
36. $
$
$
(b)
Prepare a schedule of monthly cash payments for January,
February and March. (Omit the "$" sign in your response.)
HARRY’S CARRY-OUT STORES
Cash Payments Schedule
January
February
March
Payments for purchases
$
$
$
38. Total cash payments
$
$
$
(c)
Prepare a schedule of monthly cash budget with borrowings and
repayments for January, February and March. (Leave no cells
blank - be certain to enter "0" wherever required. Negative
amounts should be indicated by a minus sign. Omit the "$" sign
in your response.)
HARRY’S CARRY-OUT STORES
Cash Budget
42. The Manning Company has financial statements as shown
below, which are representative of the company’s historical
average.
The firm is expecting a 40 percent increase in sales next year,
and management is concerned about the company’s need for
external funds. The increase in sales is expected to be carried
out without any expansion of fixed assets, but rather through
more efficient asset utilization in the existing store. Among
liabilities, only current liabilities vary directly with sales.
Income Statement
Sales
$
300,000
Expenses
246,800
Earnings before interest and taxes
$
53,200
Interest
9,100
Earnings before taxes
$
44,100
Taxes
17,100
45. Total assets
$
221,000
Total liabilities and
stockholders' equity
$
221,000
Using the percent-of-sales method, determine the amount of
external financing needs, or a surplus of funds required by the
company. (Hint: A profit margin and payout ratio must be found
from the income statement.) (Do not round intermediate
calculations. Input the amount as positive value. Omit the "$"
sign in your response.)
The firm $ in .
rev: 09_10_2011
check my workeBook Linkreferences
16.
value:
46. 1.00 points
Problem 5-8 Cash break-even analysis [LO2]
Air Purifier, Inc., computes its break-even point strictly on the
basis of cash expenditures related to fixed costs. Its total fixed
costs are $2,410,000, but 10 percent of this value is represented
by depreciation. Its contribution margin (price minus variable
cost) for each unit is $32. How many units does the firm need to
sell to reach the cash break-even point? (Round your answer to
the nearest whole number.)
Cash break-even point
units
check my workeBook Linkreferences
23.
value:
2.00 points
Problem 5-20 Combining operating and financial leverage
[LO5]
Sinclair Manufacturing and Boswell Brothers Inc. are both
involved in the production of brick for the homebuilding
industry. Their financial information is as follows:
Capital Structure
Sinclair
Boswell
Debt @ 11%
$
1,260,000
47. 0
Common stock, $10 per share
840,000
$
2,100,000
Total
$
2,100,000
$
2,100,000
Common shares
84,000
210,000
Operating Plan
Sales (61,000 units at $20 each)
$
1,220,000
$
49. (a)
If you combine Sinclair’s capital structure with Boswell’s
operating plan, what is the degree of combined leverage? (Enter
only numeric value rounded to 2 decimal places.)
Degree of combined leverage
(b)
If you combine Boswell’s capital structure with Sinclair’s
operating plan, what is the degree of combined leverage? (Enter
only numeric value.)
Degree of combined leverage
(d)
In part b, if sales double, by what percentage will EPS
increase? (Omit the "%" sign in your response.)
EPS will increase by
%
check my workeBook Linkreferences
24.
value:
3.00 points
50. Problem 5-23 Leverage and sensitivity analysis [LO6]
Dickinson Company has $11,840,000 in assets. Currently half of
these assets are financed with long-term debt at 9.2 percent and
half with common stock having a par value of $8. Ms. Smith,
vice-president of finance, wishes to analyze two refinancing
plans, one with more debt (D) and one with more equity (E).
The company earns a return on assets before interest and taxes
of 9.2 percent. The tax rate is 45 percent.
Under Plan D, a $2,960,000 long-term bond would be sold at
an interest rate of 11.2 percent and 370,000 shares of stock
would be purchased in the market at $8 per share and retired.
Under Plan E, 370,000 shares of stock would be sold at $8
per share and the $2,960,000 in proceeds would be used to
reduce long-term debt.
(a)
Compute the earnings per share for the current plan and the two
new plans. (Round your answers to 2 decimal places. Omit the
"$" sign in your response.)
Current Plan
Plan D
Plan E
Earnings per share
$
$
$
(b-1)
Compute the earnings per share if return on assets fell to 4.60
percent. (Round your answers to 2 decimal places. Leave no
cells blank - be certain to enter "0" wherever required. Negative
51. amounts should be indicated by a minus sign. Omit the "$" sign
in your response.)
Current Plan
Plan D
Plan E
Earnings per share
$
$
$
(b-2)
Which plan would be most favorable if return on assets fell to
4.60 percent? Consider the current plan and the two new plans.
Plan D
Current Plan
Plan E
(b-3)
Compute the earnings per share if return on assets increased to
14.2 percent. (Round your answers to 2 decimal places. Omit
the "$" sign in your response.)
Current Plan
Plan D
Plan E
52. Earnings per share
$
$
$
(b-4)
Which plan would be most favorable if return on assets
increased to 14.2 percent? Consider the current plan and the two
new plans.
Plan D
Plan E
Current Plan
(c-1)
If the market price for common stock rose to $10 before the
restructuring, compute the earnings per share. Continue to
assume that $2,960,000 in debt will be used to retire stock in
Plan D and $2,960,000 of new equity will be sold to retire debt
in Plan E. Also assume that return on assets is 9.2
percent. (Round your answers to 2 decimal places. Omit the "$"
sign in your response.)
Current Plan
Plan D
Plan E
Earnings per share
$
53. $
$
(c-2)
If the market price for common stock rose to $10 before the
restructuring, which plan would then be most attractive?
Current Plan
Plan E
Plan D
54000
2300
2150
2100
2600
2850
3000
43000
2700
57. 48000
Macroeconomics
Instructor: Jen Dinsmore Hanson
Homework Assignment
Chapter 10
Multiple Choice Questions
1. Junior Ozark dresses for job interviews in bib overalls, a red
lumberjack shirt, and torn
basketball sneakers. He has been looking for a job as an
investment banker ever since he dropped
out of high school. He is now 46 years old and has never held a
job. Mr. Ozark is _____
unemployed.
A. frictionally
B. structurally
C. cyclically
D. psychologically
58. 2. Troughs occur
A. two or three times a year.
B. two or three times in every business cycle.
C. at the bottom of business cycles.
D. about once every 25 years.
3. Which statement is true?
A. People collecting unemployment benefits are not counted as
unemployed.
B. The Bureau of Labor Statistics compiles the unemployment
rate from the data they collect
from the unemployment insurance officers.
C. The unemployment rate is calculated by dividing the number
of unemployed by the number of
employed.
D. None of the statements are true.
4. During the early 1980s the changes that occurred in inflation
and unemployment rates
A. suggest that disinflation can occur only if unemployment
increases significantly.
59. B. support the notion of a stable Phillips curve.
C. suggest that both inflation and unemployment can be
consistently reduced by dramatically
increasing interest rates.
5. Among the following cases, which one would be considered
to be unemployed? Someone
who
A. worked three days in the last month but is now out of work.
B. is ready, willing, and able to work, but gave up looking for
work three months ago.
C. reported to the state employment office last week but is not
very enthusiastic about finding a
job.
6. Kimberly quit her job as a computer programmer, spent two
weeks in Hawaii, and is now
looking for (and expects to soon find) another job. She is _____
unemployed.
A. psychologically
B. structurally
C. frictionally
60. D. cyclically
7. In 1973 the OPEC countries
A. lowered the price of oil by 50%.
B. raised the price of oil by 50%.
C. doubled the price of oil.
D. quadrupled the price of oil.
8. Which of the following is NOT one of a group of variables
that make up the Index of Leading
Indicators?
A. New building permits issued
B. The unemployment rate
C. Index of stock prices
D. The money supply
E. The average workweek of production workers in
manufacturing
61. 9. Which statement is true about the rate of inflation?
A. It was higher in the 1960s than in the 1970s.
B. It was higher in the 1970s than in the 1960s.
C. It was about the same in the 1960s as in the 1970s.
10. Point X is in the _____ phase of the business cycle.
A. prosperity
B. recovery
C. recession
D. depression
E. acceleration
11. Point Y is in the _____ phase of the business cycle.
A. prosperity
B. recovery
C. depression
D. recession
62. E. acceleration
12. The recovery phase of the business cycle is _____ followed
by the prosperity phase.
A. never
B. sometimes
C. usually
D. always
13. Mikhail was president of a large country almost 20 years
ago. He is still looking for a similar
position. Mikhail is _____ unemployed.
A. seasonally
B. frictionally
C. cyclically
D. structurally
14. Deflation is
A. hyperinflation.
B. a constant rate of inflation.
C. a slow-down in the rate of inflation.
63. D. zero inflation.
E. a decline in the average price level
15. Which one of these periods had the highest rate of inflation?
A. 1945-1948.
B. 1957-1960.
C. 1961-1964.
D. 1969-1972.
E. 1984-1986.
16. A computerized job bank would be most effective in
reducing _____ unemployment.
A. seasonal
B. frictional
C. cyclical
D. structural
17. The _____ the unemployment rate and the _____ the rate of
inflation, the higher the misery
index.
A. higher; higher
B. lower; lower
64. C. higher; lower
D. lower; higher
18. Which one of these groups is counted among the
unemployed?
A. Discouraged workers
B. People collecting unemployment benefits
C. People working part time
D. People out of the labor force
19. A person who is not in the labor force and not actively
looking for a job is
A. employed.
B. unemployed.
C. underemployed.
D. discouraged.
20. In the song "My Hometown" by Bruce Springsteen, the
foreman at the textile mill by the
comin' back." This is an example of
A. frictional unemployment.
65. B. cyclical unemployment.
C. structural unemployment.
D. seasonal unemployment.
21. The supply-side shocks that affected the United States in
1973 and 1979 were the result of
A. government tax policies.
B. union wage demands.
C. OPEC policies regarding the availability and price of crude
oil.
D. periods of stagflation in which the United States had
achieved low or negative rates of growth
in real GDP.
E. increases in aggregate supply.
22. The Phillips curve tradeoff implies
A. that if the curve is stable, society must accept increases in
inflation in exchange for decreases
in unemployment.
B. that if the curve is unstable, society must accept increases in
inflation in exchange for
decreases in unemployment.
66. C. that if the curve is stable, society must accept increases in
inflation in exchange for increases
in unemployment.
D. that if the curve is unstable, society must accept falling
unemployment when inflation falls.
23. Statement I: Unemployment was higher in the 1970s than in
the 1960s.
Statement II: Unemployment was higher in the 1980s than in the
1970s.
A. Statement I is true and statement II is false.
B. Statement II is true and statement I is false.
C. Both statements are true.
D. Both statements are false.
24. Each of these was a recession year except
A. 1974.
B. 1980.
C. 1982.
D. 1986.
E. 1990.
25. Recently there has been high unemployment in the steel
industry due to a recession. What
67. type of unemployment is the steel industry experiencing?
A. Frictional unemployment
B. Cyclical unemployment
C. Natural unemployment
D. Structural unemployment
26. The Phillips curve shows the relationship between various
rates of unemployment and
A. interest rates.
B. real wage rates.
C. inflation.
D. the money supply.
E. investment demand.
27. A current value for the CPI of 125 means that the
A. consumer must now pay $1.25 to purchase goods that cost
$1.00, on the average, in the base
year.
B. average price level currently is 125 times higher than the
average price level during the base
68. year.
C. purchasing power of a given money income is 25 percent
larger during the base year than
when the index was formulated.
D. purchasing power of money has increased 125 percent over
time.
28. People are classified as unemployed if
A. they choose to exit the labor force because they cannot find a
job.
B. they are not working for voluntary reasons.
C. they are willing and able to work but cannot find a job.
D. they do not have a job because they choose to work at home
for no pay.
29. Stagflation involves simultaneous high levels of
A. unemployment and interest rates.
B. interest rates and inflation.
C. unemployment and inflation.
D. economic growth and inflation.
E. stagnation and degeneracy.
30. Frictional unemployment is
69. A. the lowest rate of unemployment that can be maintained
without accelerating the rate of
inflation.
B. caused by a mismatch between the skills of unemployed
workers and the skills required in
jobs that have openings.
C. associated with downturns in the pace of economic activity.
D. caused because time is needed to enter the labor force to find
a job or to move from one job to
another.
31. Statement I: The most widely used forecasting device is the
index of leading indicators.
Statement II: The index of leading economic indicators usually
turns downward as a recession
approaches.
A. Statement I is true and statement II is false.
B. Statement II is true and statement I is false.
C. Both statements are true.
D. Both statements are false.
32. Structural unemployment results from
A. changes in business inventories.
70. B. changes in interest rates.
C. changes in both technology and the changing demand for
products.
D. all of the choices/statements are true.
33. Statement I: It is possible for the unemployment rate to
decline while the total employment
declines.
Statement II: It is possible for the unemployment rate to decline
while the number of
unemployed people stays the same.
A. Statement I is true and statement II is false.
B. Statement II is true and statement I is false.
C. Both statements are true.
D. Both statements are false.
34. Statement I: People who have looked for a job six months
ago but are not looking now (and
are not working) are counted as discouraged workers, and
therefore are officially unemployed.
Statement II: Because of imperfect information in the labor
market, there will always be some
71. frictional unemployment.
A. Statement I is true and statement II is false.
B. Statement II is true and statement I is false.
C. Both statements are true.
D. Both statements are false.
35. Use the following choices regarding the various types of
unemployment to describe this
situation. Joe is looking for work as a machinist after his and
most other machinist jobs were
eliminated, replaced by computer-operated machines.
A. Frictional unemployment
B. Structural unemployment
C. Natural unemployment
D. Cyclical unemployment
E. None of the choices are correct
36. The unemployment rate is a fraction whose numerator is
A. the total population.
B. the number of employed.
C. the number of unemployed.
72. D. the difference between the total population and the number
of employed.
37. Tired of looking for work with nothing to show for it, Bill
has given up on the job search.
Bill is
A. a contingent worker.
B. part of the frictionally unemployed.
C. voluntarily unemployed.
D. a discouraged worker.
E. a displaced worker.
38. Statement I: Cyclical unemployment is the term given to
workers who have been laid off
because their skills are no longer in demand.
Statement II: At any given time about five percent of the labor
force is frictionally unemployed.
A. Statement I is true and statement II is false.
B. Statement II is true and statement I is false.
C. Both statements are true.
D. Both statements are false.
73. 39. What does NOT occur in a fully employed economy?
A. Cyclical unemployment
B. Discouraged workers
C. Frictional unemployment
D. Structural unemployment
40. The Consumer Price Index measures
A. changes in the money supply.
B. changes in all prices.
C. changes in the price of a market basket of consumer goods.
D. changes in the cost of consumer credit.
E. average prices charged in retail stores.
41. Use the following choices regarding the various types of
unemployment to describe this
situation. Tired of the same job, day-in and day-out, Delores
quit her job and is looking for more
challenging work.
A. frictional unemployment
B. structural unemployment
C. natural unemployment
74. D. cyclical unemployment
42. The unemployment rate is the
A. ratio of unemployed to employed workers.
B. number of employed workers minus the number of workers
who are not in the labor force.
C. percentage of the civilian labor force which is out of work.
D. percentage of the total population which is out of work.
43. The U.S. Department of Labor calculates the unemployment
rate by
A. totaling the number of households receiving unemployment
compensation.
B. analyzing federal income tax returns.
C. surveying households.
D. surveying businesses to determine patterns of hiring and
layoffs.
44. The U.S. Department of Labor may underestimate the
severity of unemployment for all of
the following reasons except
A. discouraged workers are not considered part of the labor
force.
B. many workers are "underemployed," occupying jobs well
75. below their levels of skills and
education.
C. surveys of household members are likely to produce a rosier
picture of employment
circumstances than actually exists.
D. many households earn far less income than they desire.
E. part-time workers are grouped among the employed, even
though they desire full-time
employment.
45. Suppose there are 8 million unemployed workers seeking
jobs. After a period of time, 2
million of them become discouraged over their job prospects
and cease to look for work. As a
result of this, the official unemployment rate would
A. increase in the short run but eventually decline.
B. increase.
C. decline.
D. be unchanged.
46. Official unemployment statistics
76. A. understate unemployment because individuals receiving
unemployment compensation are
counted as employed.
B. understate unemployment because "discouraged workers" are
not counted as unemployed.
C. include cyclical and structural unemployment, but not
frictional unemployment.
D. overstate unemployment because workers who are
involuntarily working part time are
counted as being employed.
47. During the period 1983-1989, the U.S. economy was
A. contracting.
B. in a recession.
C. in the trough of the business cycle.
D. expanding.
E. None of the choices are correct.
48. In order for a recession to occur real GDP would have to
fall for at least _____ business
quarter(s).
A. one
B. two
77. C. three
D. four
E. five
49. Statement I: The CPI and the GDP deflator are similar
concepts, but the GDP deflator is a
broader measure.
Statement II: The CPI and the GDP deflator are inversely
related, so when the CPI rises, the
GDP deflator declines.
A. Statement I is true and statement II is false.
B. Statement II is true and statement I is false.
C. Both statements are true.
D. Both statements are false.
50. Statement I: The CPI goes up every year; it can never go
down.
Statement II: In constructing the Consumer Price Index, the
Bureau of Labor Statistics compiles
a market basket of hundreds of goods and services that the
typical urban family buys in the base
year.
78. A. Statement I is true and statement II is false.
B. Statement II is true and statement I is false.
C. Both statements are true.
D. Both statements are false.
Short Answer Questions
1. Given the following information, how many people are in the
labor force? U.S. population,
250 million; employed, 135 million; unemployed, 5 million;
discouraged workers, 4 million;
collecting unemployment insurance, 3 million.
Short Answer Questions continued on next page…..
Short Answer Questions continued
2. Given the following information, compute the unemployment
rate: 6 million unemployed, 124
million employed.
3. If the rate of inflation is 6 percent, the nominal interest rate
is 9%, and the unemployment rate
79. is 7%, how much is the misery index?
4. Given: 80 million employed; 20 million unemployed; 10
million collecting unemployment
insurance benefits; 10 million discouraged workers. Find: (a)
the number of people in the labor
force; (b) the unemployment rate.
Macroeconomics
Instructor: Jen Dinsmore Hanson
Homework Assignment
Chapter 9
Multiple Choice Questions
1. Net domestic product is usually preferred to GDP by
economists because net national
product
A. includes depreciation.
B. excludes depreciation.
80. C. includes indirect business taxes.
D. excludes indirect business taxes.
2. If GDP rose from $4 trillion to $6 trillion, and prices rose by
50 percent, over this period
A. real GDP fell by 100 percent.
B. real GDP fell by 50 percent.
C. real GDP stayed the same.
D. real GDP rose by 50 percent.
E. real GDP rose by 100 percent.
3. Which is not counted in GDP?
A. A Social Security check sent to a retiree
B. Government spending on highway building
C. Money spent on an airline ticket
D. Money spent by a company to build a new office park
4. The smallest component of national income is
A. rent.
B. interest.
C. profits.
D. salaries and wages.
81. 5. Which one of the following is counted in GDP?
A. Government spending
B. Transfer payments
C. Intermediate goods
D. Leisure time
6. Which statement is true?
A. GDP can never be greater than NDP.
B. NDP can never be greater than GDP.
C. GDP and NDP are always equal.
D. None of the statements are true.
7. Which statement is true?
A. In recent years net exports have been negative.
B. Government spending is the largest sector of GDP.
C. Business investment is the largest sector of GDP.
D. None of the statements are true.
82. 8. If GDP declined by 6 percent in real terms during one year,
and population declined by 3
percent, then
A. real GDP per capita decreased.
B. real GDP per capita increased.
C. real GDP increased while nominal GDP decreased.
D. nominal GDP did not change at all.
E. prices went down by 3 percent.
9. If our population doubles, our GDP doubles, and the GDP
deflator doubles, our per capita
real GDP will
A. quadruple.
B. double.
C. stay exactly the same.
D. decline by 25 percent.
E. decline by 50 percent.
10. Gross Domestic Product is the total market value of all
A. commodities sold in a year.
B. goods and services produced in a year within a country.
83. C. foods and services produced by domestic companies in a
year.
D. consumer goods sold in a year.
11. National income measures
A. nominal GDP after it has been inflated or deflated for
changes in the value of the dollar.
B. the inflation adjusted income of resource supplies.
C. the market value or cost of the resources used in the
production of the national output.
D. tax receipts of the federal government.
12. For purposes of calculating GDP using the expenditure
approach, which of the following
is NOT included in the government expenditures account?
A. The government's purchase of pencils
B. The payroll of the federal government
C. The welfare payments made to the poor
D. The government's purchase of a computer
E. None of the choices are correct
13. Intermediate products are
A. goods that are purchased by the government.
84. B. goods that are transferred to the states.
C. products produced by the federal government but consumed
by the states.
D. products produced by business firms for resale to other firms
for further processing before
sold to the final consumer of the product.
14. GDP is
A. the market value of an economy's production of final goods
and services.
B. the sum of coins, bills, and demand deposits in an economy.
C. the total expenditures of the federal government over the
period of 1 year.
D. the market value of an economy's production of intermediate
goods and services.
E. the total amount the government owes to bondholders.
15. The change in the United States from a rural, self-sufficient
economy to an urban, market-
oriented economy had the effect of
A. causing the growth in GDP to understate the growth in
economic well-being.
B. inhibiting the growth of GDP.
85. C. causing the growth in GDP to overstate the growth in
economic well-being.
D. increasing GDP primarily through the resulting increase in
the general price level.
16. Wages are used to calculate
A. GDP by the income approach.
B. GDP by the expenditures approach.
C. Net exports.
D. Net subsidies to government enterprises.
E. None of the choices are correct.
17. National income accountants can avoid multiple accounting
by
A. including transfers in their calculations.
B. counting both intermediate and final goods.
C. only counting final goods.
D. only counting intermediate goods.
18. The value added for a nation equals
A. all goods and services less the intermediate goods used in
production.
B. the market value of all products and services less the market
86. value of all intermediate
goods.
C. input costs plus the value of intermediate goods.
D. the market value of intermediate goods less the value of all
goods and services.
19. Suppose that our GDP rose from $20 trillion in the year
2012 to $37 trillion in the year
2013.
A. Real GDP definitely increased.
B. Real GDP definitely decreased.
C. The GDP deflator definitely doubled.
D. The GDP deflator definitely increased.
E. The GDP deflator definitely decreased.
20. The concept of "net domestic investment" refers to
A. the amount of machinery and equipment used up in
producing the GDP in a given year.
B. the difference between the market value and book value of
outstanding capital stock.
C. gross domestic investment less net exports.
D. total investment less the amount of investment goods used up
in accomplishing the year's
87. production.
E. The total output of capital equipment, construction, and
additions to inventories which
occur in a given year.
21. National income includes all of the following except
A. wages and salaries.
B. corporate profits before taxes.
C. rental income.
D. depreciation.
22. In evaluating an economy's performance over a period of
years, real GDP provides a
better measuring rod than GDP because
A. GDP is distorted by its failure to show qualitative
improvements in the products we
manufacture.
B. Real GDP is adjusted for the social and environmental costs
of production, which are
normally not compensated.
C. Real GDP includes such productive endeavors as housewife
88. services and home repairs that
are performed by households without payment.
D. Real GDP does not include the value of intermediate goods
and services.
E. GDP reflects changes in prices as well as changes in output,
while real GDP only reflects
changes in output.
23. We use the value added approach in calculating GDP to
A. avoid double counting.
B. account for market price differences.
C. account for changes in population.
D. account for consumer income differences.
24. In 2009, the largest share of the United States economy's
allocation of national product to
land, labor, capital, and management was primarily received by
the suppliers of
A. Management.
B. Land.
C. Labor.
D. Capital.
89. 25. GDP can increase at a faster rate than real GDP
A. only if there is a decline in the price level.
B. only if the unemployment rate is increasing.
C. only if the value of the dollar is stable.
D. only if the population is growing.
E. only if there is inflation.
26. The effect of Hurricane Katrina from a national income
accounting standpoint probably
caused real GDP to
A. decrease.
B. increase.
C. stay the same.
27. The total market value of a nation's aggregate production of
final output based on current
prices for the goods and services produced during a given year
is called
A. net national product.
B. national income.
C. GDP.
D. real GDP.
90. 28. The nation of Upper Volta has a population of 100 million
and a GDP of $4 trillion; the
nation of Lower Volta has a population of 20 million and a GDP
of $600 billion.
A. Upper Volta has a higher per capita GDP than Lower Volta.
B. Lower Volta has a higher per capita GDP than Upper Volta.
C. The per capita GDPs of the two nations are equal.
D. There is not enough information to determine the relative per
capita GDPs of the two
nations.
29. In comparing GDP data over a period of years a difference
between GDP and real GDP
may arise because
A. Of changes in our trade deficits and surpluses.
B. The length of the workweek has declined historically.
C. The price level may change over time.
D. Depreciation may be greater or smaller than gross
investment.
30. Which of the following is part of gross domestic product?
91. A. Value of homemakers' services in the home.
B. Purchase of a second-hand car from a neighbor.
C. Purchase of new stock from a recognized broker.
D. Purchase of a new textbook in the local bookstore.
E. Purchase of a corporate bond.
31. GDP can be estimated by summing
A. personal consumption expenditures, net private domestic
investment, and federal
government spending.
B. personal consumption expenditures, gross private domestic
investment, government
spending on goods and services, and net exports.
C. all services and goods purchased by households, businesses,
and government.
D. household spending, investment, financial transactions, and
government transfers.
32. The underground economy
A. consists mainly of such involuntary transfer payments as
savings and loan fraud and bank
robberies.
B. consists only of illegal activities such as prostitution, loan-
92. sharking, and narcotics.
C. is a very stable percentage of GDP.
D. causes GDP to be underestimated by 10 to 15 percent.
E. is a much larger percentage in the United States than in most
other countries.
33. If there is a recession, which of the following will decline?
A. GDP
B. Government purchases
C. Real GDP
D. Nominal income
34. Suppose a farmer sells a bushel of wheat to a miller for $1;
the miller makes it into flour
and sells it to a baker for $2; the baker turns it into bread and
sells it to a customer for $3.
Calculating GDP the contribution of transactions would be
A. $1.00.
B. $2.00.
C. $3.00.
D. $6.00.
93. 35. If families began doing each other's laundry for pay, GDP
would
A. rise.
B. fall.
C. remain unchanged because services are not included in GDP.
D. remain unchanged because laundry is not a final good.
36. The value actually earned by members of households who
supply the inputs necessary to
produce GDP is called
A. net investment.
B. national income.
C. personal income.
D. disposable income.
E. net national product.
37. Suppose that GDP is equal to $8 trillion. If net exports are -
$1 trillion, consumption is $5
trillion, and investment is $2 trillion it follows that
A. government purchases are zero.
B. government purchases are $1 trillion.
94. C. government purchases are $2 trillion.
D. government purchases are $3 trillion.
38. If a large number of families moved from cities to rural
areas and produced the major
portion of the food what would be the effect on the GDP?
A. GDP would decline
B. GDP would increase
C. GDP would be unaffected
D. GDP would equal NDP
39. Gross investment refers to
A. net investment plus net exports.
B. net investment after it has been "inflated" for changes in the
price level.
C. net investment plus depreciation.
D. private investment plus public investment.
40. Which one of the following is a final good or service?
A. Microcomputer chips for a new computer
B. A radio bought by General Motors for use in its new line of
cars
C. Chemical pesticides used by a farmer to control the incidence
95. of crop disease
D. A will drawn up by your personal attorney
E. The lead added to gasoline to increase the octane rating
41. Statement I: The higher the GDP deflator, the greater the
degree of deflation.
Statement II: Real GDP was higher in 1992 than in 1991.
A. Statement I is true and statement II is false.
B. Both statements are true.
C. Statement II is true and statement I is false.
D. Both statements are false.
42. The term "final goods and services" refers to
A. goods and services which are unsold and therefore added to
inventories.
B. goods and services whose value has been adjusted for
changes in the price level.
C. good and services purchased by ultimate users, as opposed to
resale or further processing.
D. the excess of American exports over American imports.
E. consumer goods, as opposed to investment goods.
96. 43. GDP is $7 trillion. If consumption is $4.2 trillion,
investment is $1.4 trillion, and
government purchases are $2.1 trillion, then
A. exports are equal to imports.
B. exports exceed imports by $0.7 trillion.
C. imports exceed exports by $0.7 trillion.
D. exports are equal to $0.7 trillion.
44. The increase in the proportion of women in the labor force
causes GDP to _____ the
growth in economic well-being because ___.
A. overstate; some of the services that women formerly
provided in the home are now
purchased in the market
B. overstate; the services that women provide in the home do
not contribute to economic well-
being
C. understate; some of the services that women formerly
provided in the home are now
purchased in the market
D. understate; the services that women provide in the home do
not contribute to economic
97. well-being
45. The sale of a used 1999 automobile in 2009 would not be
included in 2009 GDP because
it
A. is a nonmarket transaction.
B. would involve double counting.
C. has already been accounted for.
D. is a noninvestment transaction.
46. Transfer payments are
A. flows of income received by foreigners.
B. flows of income received by exporters.
C. included in GDP.
D. excluded from GDP.
E. stocks of unplanned inventory produced in prior years.
47. Military goods purchased by the government are
A. not included in GDP.
B. measured in GDP by their cost of production.
C. measured in GDP by how much their goods add to the
economic well-being.
98. D. measured in GDP only if the government sells these goods to
another country.
48. Payments for goods and services that will be used up by
households during the year are
A. investment expenditures for the production of output.
B. made by firms to households and called national income.
C. called consumption expenditures.
D. for intermediate goods and are not counted in GDP.
49. Statement I: When there is inflation, real GDP will be
greater than GDP.
Statement II: The greater depreciation is, the greater the
difference between GDP and NDP.
A. Statement I is true and statement II is false.
B. Statement II is true and statement I is false.
C. Both statements are true.
D. Both statements are false.
50. Which of the following is an example of an intermediate
product?
A. A pair of skis sold by a sporting goods retailer
B. A share of IBM stock
99. C. The lumber produced by Boise Cascade and sold to a builder
of new houses
D. An antique car sold to the highest bidder
E. None of the choices are true
Short Answer Questions
1. Find national income.
2. Find net domestic product.
3. Find gross domestic product.
4. Find national income.
5. Find net domestic product.
6. Find gross domestic product.
7. If the GDP deflator rises from 150 to 175, by what
percentage did prices rise?