Answers to End-of-Chapter Questions

Chapter 1 The Art and Science of Economic Analysis INTRODUCTION THIS CHAPTER HAS TWO PURPOSES: TO INTRODUCE STUDENTS TO SOME OF THE BASIC LANGUAGE OF ECONOMICS AND TO STIMULATE STUDENT INTEREST IN THE SUBJECT. IT CONVEYS TO STUDENTS THAT ECONOMICS IS NOT ONLY FOUND IN THE FINANCIAL SECTION OF THE NEWSPAPER, BUT ALSO IS VERY MUCH A PART OF THEIR EVERYDAY LIVES. BEGINNING WITH THE ECONOMIC PROBLEM OF SCARCE RESOURCES BUT UNLIMITED WANTS, THIS CHAPTER PROVIDES AN OVERVIEW OF THE FIELD AND THE…

Hoang Jimmy Dinh 1089188 SCLT 2362 (Online) Prof. Kidd September 9, 2013 Chapter 1 End Of Chapter Questions 1. It did not surprise me that logistics has an important impact on the economy because logistics is one of the biggest causes for globalization. Logistics is the movement and management of goods and that is what keeps countries involved with one another. 2. Possession utility is the efficiency of the product that the customer receives from possessing the product. Form utility…

Chapter 7 Accounting for Financial Management ANSWERS TO BEGINNING-OF-CHAPTER QUESTIONS 7-1 The balance sheet shows the assets, along with the sources of funds used to acquire the assets, at a point in time, say 12/31/07. The income statement shows the sales and profits that were produced during an interval of time, say the year 2007. An individual would have assets, and a net worth, and a balance sheet would detail these holdings. The individual would also have income and expenses,…

Answers to Questions for Review 1. (Market Structure) Define market structure. What factors are considered in determining the market structure of a particular industry Market structure refers to the important features that determine the level of competition in an industry. These factors include (a) the number of buyers and sellers, (b) the products degree of uniformity, (c) the ease with which new firms enter or old firms exit the market, and (d) the ways in which firms in the industry compete…

Chapter One: Cherries- First Impressions 1. What is the purpose of the title? What connotations does this title hold? What do you expect to find in the letters that will follow? The purpose of the title is to give the audience the impression that the following stories are not only the first impressions of the soldiers but the expectations they hold of the Vietnam War and the new experiences they are enduring as “Cherries” to the war. The meaning behind this title is that the soldiers are virgins…

E-Business Ch. 6 – 10 Assignments Chapter 6 Questions 1) Is growth of the internet, in terms of users, expected to continue indefinitely? What will cause it to slow if anything? Internet growth is now currently slowing. This is because of computer costs. Unless the price of computers drop significantly the internet growth rate will continue to decline 3) Would you say that the Internet fosters or impedes social activity? Explain your position. I would say both. The Internet probably both…

Please read chapter 10 and answer the following questions: 1. (Varieties of Oligopolies) do the firms in an oligopoly act independently or interdependently? Explain your answer. 2. (Price Leadership) why might a price–leadership model of oligopoly not be an effective means of collusion in an oligopoly? * Price leadership practices violate US anti-trust laws. * The more differentiated the product is, the less effective price leadership is as a means of collusion. * There is no guarantee…

ANSWERS TO End-of chapter QUESTIONS AND exercises Answers to Questions for Review 1. (Explicit and Implicit Costs) Amos McCoy is currently raising corn on his 100-acre farm and earning an accounting profit of $100 per acre. However, if he raised soybeans, he could earn $200 per acre. Is he currently earning an economic profit? Why or why not? Amos McCoy is not currently making an economic profit, despite the fact that he is making an accounting profit. This is so, because the accounting…

Chapter Nine Finance: Acquiring and Using Funds to Maximize Value Review Questions 1. What is the key goal that guides the decisions of financial managers? What challenges do financial managers face when they try to find the best sources and uses of funds to meet this goal? The financial mangers goal is acquisition, financing, and management of assets. The challenges are investment, financing, and asset management decisions. 2. List the four basic types of financial ratios used to measure…

End-of-Chapter Question Solutions 1 ____________________________________________________________ ________________________________ CHAPTER 5: FOREIGN CURRENCY DERIVATIVES 1. Options versus Futures. Explain the difference between foreign currency options and futures and when either might be most appropriately used. An option is a contract giving the buyer the right but not the obligation to buy or sell a given amount of foreign exchange at a fixed price for a specified time period. A future…