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1. Budgetary project costs can be viewed from which of the following perspectives:
a. project manager.
b. accountant.
c. controller.
d. all of the above.
2. Which of the following is an advantage of top-down budgeting?
a. Overall budget costs can be estimated accurately.
b. Overall budget allows for exceptions.
c. Small tasks that are overlooked do not cause budget problems.
d. All of the above.
Your disposable income is $100,000 a year. You face a 50/50 chance of losing $10,000 from an illness requiring surgery and value your income to the utility function U=income^0.6. What is your expected income, what is your certainty equivalent, what i..
You deposit $10000 into an account paying 8% interest compounded quarterly. You want to make withdrawals of $1300 each year for the next 15 years. If you were to make two equal deposits, one in year 5, the other in year 10, how much would they need t..
If government industry regulators underestimate the degree of competition in an industry are they likely to over-regulate the industry? Explain.
A restaurant/bar is analyzing its pricing of beer. It has determined that the price elasticity of demand for beer is −0.8; the cross-price elasticity for wine with respect to the price of beer is 0.9; What is the restaurant's profit (prior to the pri..
For a single illness (such as a sore throat and cough), show the demand curves for three different consumers with different preferences about medical care and other goods. Need the demand curves be parallel? Could they ever cross?
Marx argues that capitalists appropriate surplus value through the process of exploitation. Explain what Marx means by “exploitation” and discuss the various means by which capitalists seek to extract additional surplus from workers. Provide real-wor..
“The new healthcare law will work only if congressional republicans don't obstruct its implementation. However, either congressional republicans will obstruct its implementation or they will let the U.S. Economy go into default. Whether the set of p..
You are employed as an economic consultant to the regional planning office of a large metropolitan area, and your task is to estimate the demand for hospital services in the area. Use this information to project the impact of the following changes on..
Suppose that in a certain market the demand function for a product is given by 10p + q = 2500 and the supply function is given by 40p − q = 380. If the government levies a tax of $3 per item on the supplier, who passes the tax on to the consumer as a..
Which of the following statements about financial institutions is correct? Janet saves $100 in a bank account that pays 4% interest per year. How much is Janet's account worth at the end of one year? What is the value of Janet's $100 deposit five yea..
According to the Fisher equation, if a bank extends a loan for 3% and the inflation rate ends up being 5%:
The monopolist’s marginal revenue is different from the one facing a firm in perfect competition because: (a) The price elasticity he faces is less than unity; (b) The price elasticity he faces is equal to unity; (c) The price elasticity he faces is ..
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