Economics Midterm

1619 Words7 Pages
Question 1 5 out of 5 points Economic profit is defined as the difference between revenue and ________________. Selected Answer: total economic cost Correct Answer: total economic cost Question 2 5 out of 5 points In the shareholder wealth maximization model, the value of a firm's stock is equal to the present value of all expected future ___________ discounted at the stockholders' required rate of return. Selected Answer: profits Correct Answer: profits Question 3 0 out of 5 points A typical factor that creates principal-agent problems is Selected Answer: the greater number of agents relative to the number of principals Correct Answer:…show more content…
Correct Answer: c.Demand is elastic and marginal revenue is positive. Question 19 0 out of 5 points An increase in the exchange rate of the U.S. dollar relative to a trading partner can result from Selected Answer: higher interest rates and higher inflation in the U.S. Correct Answer: higher growth rates in the trading partner's economy Question 20 5 out of 5 points An appreciation of the U.S. dollar has what impact on U.S. manufacturers? Selected Answer: domestic sales decrease and foreign sales decrease Correct Answer: domestic sales decrease and foreign sales decrease Question 21 0 out of 5 points In an open economy with few capital restrictions and substantial import-export trade, a rise in interest rates and a decline in the producer price index of inflation will Selected Answer: lower the nominal interest rate Correct Answer: raise the value of the currency Question 22 0 out of 5 points The marginal rate of technical substitution may be defined as all of the following except: Selected Answer: equal to the negative slope of the isoquant at any point on the isoquant Correct Answer: the rate at which all combinations of inputs have equal total costs Question 23 5 out of 5 points The marginal product is defined as: Selected Answer:

More about Economics Midterm

Open Document