Reference no: EM13246034
The purchasing power parity hypothesis implies that an increase in inflation in one country relative to another will over a long period of time
Answer
increase exports
reduce the competitive pressure on prices
lower the value of the currency in the country with the higher inflation rate
increase foreign aid
increase the speculative demand for the currency
Which of the following barometric indicators would be the most helpful for forecasting future sales for an industry?
Answer
lagging economic indicators.
leading economic indicators.
coincident economic indicators.
wishful thinking
European Union labor costs exceed U.S. and British labor costs primarily because
Answer
worker productivity is lower in the EU
union wages are higher in the EU
layoffs and plant closings are more restrictive in the U.S. and Britain
the amount of paid time off is higher in the EU
labor-management relations are better in the EU
An appreciation of the U.S. dollar has what impact on Harley-Davidson (HD), a U.S. manufacturer of motorcycles?
Answer
domestic sales of HD motorcycles increase and foreign sales of HD motorcycles increase
domestic sales of HD motorcycles decrease and foreign sales of HD motorcycles increase
domestic sales of HD motorcycles increase and foreign sales of HD motorcycles decrease
domestic sales of HD motorcycles decrease and foreign sales of HD motorcycles decrease
Companies that reduce their margins on export products in the face of appreciation of their home currency may be motivated by a desire to
Answer
sacrifice market share abroad but build market share at home
increase production volume to realize learning curve advantages
sell foreign plants and equipment to lower their debt
reduce the costs of transportation
The combinations of inputs costing a constant C dollars is called:
Answer
an isocost line
an isoquant curve
the MRTS
an isorevenue line
Marginal factor cost is defined as the amount that an additional unit of the variable input adds to ____.
Answer
marginal cost
variable cost
marginal rate of technical substitution
total cost
The marginal product is defined as:
Answer
The ratio of total output to the amount of the variable input used in producing the output
The incremental change in total output that can be produced by the use of one more unit of the variable input in the production process
The percentage change in output resulting from a given percentage change in the amount
The amount of fixed cost involved.
The following is a Cobb-Douglas production function: Q = 1.75K0.5·L0.5. What is correct here?
Answer
A one-percent change in L will cause Q to change by one percent
A one-percent change in K will cause Q to change by two percent
This production function displays increasing returns to scale
This production function displays constant returns to scale
This production function displays decreasing returns to scale
What method of inventory valuation should be used for economic decision-making problems?
Answer
book value
original cost
current replacement cost
cost or market, whichever is lower
historical cost
A _________ total cost function implies that marginal costs ________ as output is increased.
a. linear; increase linearly
b. quadratic; are constant
c. cubic; increase linearly
d. linear; are constant