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100

What is economic cost (which includes both explicit and implicit costs)?

explicit 

costs out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials

implicit 

costs opportunity cost of resources already owned by the firm and used in business, for example, expanding a factory onto land already owned

 

100

Macroeconomics would address all of the following questions except

  1. What causes cyclical unemployment in the U.S economy?

  2. How does a decline in interest rates affect the U.S economy?

  3. Should the U.S. government adopt policies to reduce consumption?

  4. How much of its product should a firm produce in a given period?


  1. How much of its product should a firm produce in a given period?

100

In one study, 72 % of customers would pay a 40% premium price for their brand of choice, related to the closest competing brand.  This is an example of a brand with __________, thus making this brand a valuable company asset.

  1. Popularity

  2. Low prices

  3. Reputation

  4. Brand equity

Brand equity

100

Which of the following statements provides information about the operating, investing and financing activities of a company?

  1. Statement of Cash Flows

  2. Balance Sheet

  3. Income Statement

  4. Statement of Stockholders’ Equity

Statement of Cash Flows

100

The FIFO cost flow assumption is often used for valuation purposes of:

  1. Inventory

  2. Buildings

  3. Accounts Receivable

  4. Equipment

Inventory

200
  1. When banks borrow reserves from the Federal Reserve, the interest rate the Fed charges the borrowing banks is call the _________.


  • discount rate

200

Marginal Revenue vs. Marginal Cost

Marginal revenue is the amount of revenue one could gain from selling one additional unit. 

Marginal cost is the cost of selling one more unit.

200

Product, price, place and promotion are all elements of

  1. The marketing mix

  2. A target market

  3. A consumer good

  4. A business strategy



The marketing mix

200

Accounts receivable which result from sales transactions are called

  1. other receivables

  2. nontrade receivables

  3. trade receivables

  4. noncurrent receivables

trade receivables

200

Which of the following is classified as a long-term asset

  1. Notes Payable 

  2. Accounts Receivable

  3. Truck

  4. Prepaid Rent



Truck

300

Wal-Mart's effective distribution management techniques, efficient control of inventories through point-of-purchase data collection, and extensive agreements with suppliers represent the type of core competencies necessary to achieve:

  1. a complex competitive advantage

  2. competitive parity

  3. a sustainable competitive advantage

  4. technology awards



a sustainable competitive advantage

300

If inputs decrease while output remains constant, productivity will…..

  1. increase.

  2. Decrease.

  3. remain the same.

  4. it is impossible to tell

increase

300

What is mean, median, and mode?


The "mean" is the "average" you're used to, where you add up all the numbers and then divide by the number of numbers. The "median" is the "middle" value in the list of numbers. To find the median, your numbers have to be listed in numerical order from smallest to largest, so you may have to rewrite your list before you can find the median. The "mode" is the value that occurs most often. If no number in the list is repeated, then there is no mode for the list.

300

A bond with a face interest rate higher than the current market rate will be issued at

  1. face value

  2. a premium

  3. a discount

  4. future net value



a premium

300

Which of the following elements is not found on the Income Statement?

  1. Cash

  2. Revenues

  3. Expenses

  4. Gains/Losses



Cash

400

What method is used for capital budgeting decisions?

Net present value

400

Key elements of the Total Quality Management (TQM) approach include:

  1. involvement of everyone in the organization.

  2. continuous improvement.

  3. emphasis on customer satisfaction.

  4. all of the above

all of the above

400

During a market analysis, a company learned that its brand is viewed as being of high quality, relative to the competition in the minds of most consumers. This information would have most likely been gathered during the analysis of the brand’s ___________.

  1. Target markets

  2. Positioning strategy

  3. Objectives

  4. Pricing strategies



Target markets

400

If a company’s monthly rent increases, what is the effect on break-even volume? 

  1. decreases

  2. increases

  3. stays the same

  4. cannot determine

increases

400

Economists maintain that workers’ economic well-being depends on their real wage, not their nominal (current dollar)wage. During the 1970s and 1980s, nominal wages increased for many workers but their real wages actually fell. This most likely occurred because


  1. price increases were exactly offset by price decreases over this period of time

  2. nominal wages rose faster than the prices of consumer goods

  3. the prices of consumer goods rose faster than nominal wages

  4. the 1970s and 1980s defied most principles of economics

the prices of consumer goods rose faster than nominal wages

500

The motivation for expanding into international markets is:

        

a.    to increase the size of the firm's potential markets.

b.    to avoid economies of scale.

c.    to reduce the need for responsiveness.

d.    to pressure host governments to provide concessions and/or legal restrictions desired by the firm.

 to increase the size of the firm's potential markets.

500

The promotional-mix consists of which of the following?

  1. Advertising, communications, promotion, PR, personal selling and products

  2. Advertising, sales promotion, public relations, personal selling and direct marketing

  3. Advertising, promotion, distribution, and pricing

  4. Advertising, sales promotion, PR, pricing and distribution

Advertising, sales promotion, public relations, personal selling and direct marketing

500

Generally Accepted Accounting Principles require which method to “fairly present” financial statements?

  1. Cash Method

  2. Hybrid Method

  3. Accrual Method

  4. Method prescribed by the Internal Revenue Code

Accrual Method

500

Which of the following ratios is considered a measure of profitability

  1. Price-earnings ratio

  2. current ratio

  3. quick (acid-test) ratio

  4. profit margin

profit margin

500

What is the Regression Equation?

Finds the relationship, if any, that exists between sets of data.