Final Exam Eco

Pages: 10 (1433 words) Published: May 8, 2013
13/3/27

ECO518T022013: Final Exam

You are logged in as Raymond Wong (Logout)

LearnCenter ► ECO518T022013 ► Quizzes ► Final Exam ► Review of attempt 1

Final Exam Review of attempt 1
Finish review

Started on Wednesday, 27 March 2013, 06:09 AM Completed on Wednesday, 27 March 2013, 07:13 AM Time taken 1 hour 3 mins Marks 18/20 Grade Feedback 180 out of a maximum of 200 (90%) Excellent performance, you have clearly mastered this material and are ready to move on.

1
Marks: 1

In the case of agricultural goods: Choose one answer.
a. the value of exports is greater than the value of imports b. the value of exports is lower than the value of imports c. the value of exports is equal to the value of imports d. the value of exports and the value of imports are not measurable

Correct
Marks for this submission: 1/1.

2
Marks: 1

The internal rate of return equals the cost of capital when Choose one answer. a. NPV = 0. b. NPV > 0. c. NPV < 0.

myclasses.caluniversity.edu/mod/quiz/review.php?attempt=30446&showall=true

1/7

13/3/27

ECO518T022013: Final Exam

d. None of the above.

Correct
Marks for this submission: 1/1.

Assume a firm employs 10 workers and pays each \$15 per hour. Further assume that the MP of the 10th worker is 5 units of output and Marks: that the price of the output is \$4. According to economic theory, in the 1 short run,

3

a. the firm should hire additional workers. b. the firm should reduce the number of workers employed. c. the firm should continue to employ 10 workers. d. More information is required to answer this question.

Correct
Marks for this submission: 1/1.

4
Marks: 1

A movement along a demand curve may be caused by a change in: Choose one answer. a. the non-price determinants of demand. b. the change in consumer expectations. c. the change in demand. d. the change in supply.

Incorrect
Marks for this submission: 0/1.

The Cross-price-elasticity of demand for coffee and coffee-cream is Marks: likely to be

5
1

a. Greater than zero b. Less than zero c. Zero d. Infinity

Correct
Marks for this submission: 1/1.

myclasses.caluniversity.edu/mod/quiz/review.php?attempt=30446&showall=true

2/7

13/3/27

ECO518T022013: Final Exam

6
Marks: 1

Financial Risk occurs due to variations in returns which: Choose one answer. a. is induced by leverage b. is due to the ups and downs of the economy c. is due to changes in government regulations d. is a result of changes in exchange rates

Correct
Marks for this submission: 1/1.

Which of the following will result in a decrease in demand for residential Marks: housing in the short run?

7
1

a. a decrease in the price of lumber b. an increase in the wages of carpenters c. a decrease in real household incomes d. a decrease in the prices of residential housing

Correct
Marks for this submission: 1/1.

When two mutually exclusive projects are considered, the NPV Marks: calculations and the IRR calculations may, under certain circumstances, give conflicting recommendations as to which project 1 to accept. The reason for this result is that in the NPV calculation, cash inflows are assumed to be reinvested at the cost of capital, while in the IRR solution, reinvestment takes place at

8

a. the hurdle rate. b. the accounting rate of return. c. the prime rate. d. the project's internal rate of return.

Correct
Marks for this submission: 1/1.

9

Managerial economics is best defined as the economic study of 3/7

myclasses.caluniversity.edu/mod/quiz/review.php?attempt=30446&showall=true

13/3/27

ECO518T022013: Final Exam

Marks: 1

a. how businesses can make the most profits. b. how businesses can decide on the best use of scarce resources. c. how businesses can operate at the lowest costs. d. how businesses can sell the most products.

Correct...