Chapter 24 Measuring The Cost Living (Ans

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曼昆《经济学原理》（宏观）第五版测试题库（23）

曼昆《经济学原理》（宏观）第五版测试题库（23）Chapter 23Measuring a Nation's IncomeTRUE/FALSE1. In years of economic contraction, firms throughout the economy increase their production of goods and services, employment rises, and jobs are easy to find.ANS: F DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Economic expansion MSC: Definitional2. Macroeconomic statistics include GDP, the inflation rate, the unemployment rate, retail sales, and the trade deficit.ANS: T DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Macroeconomics MSC: Definitional3. Macroeconomic statistics tell us about a particular household, firm, or market.ANS: F DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Macroeconomics MSC: Definitional4. Macroeconomics is the study of the economy as a whole.ANS: T DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Macroeconomics MSC: Definitional5. The goal of macroeconomics is to explain the economic changes that affect many households, firms, and markets simultaneously.ANS: T DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Macroeconomics MSC: Definitional6. Microeconomics and macroeconomics are closely linked.ANS: T DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Microeconomics | Macroeconomics MSC: Definitional7. The basic tools of supply and demand are as central to macroeconomic analysis as they are to microeconomic analysis.TOP: Demand | Supply MSC: Definitional8. GDP is the most closely watched economic statistic because it is thought to be the best single measure of asociety’s economic well-being.ANS: T DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Definitional9. GDP can measure either the total income of everyone in the economy or the total expenditure on theeconomy’s output of goods and services, but GDP cannot measure both at the same time.ANS: F DIF: 2 REF: 23-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Interpretive10. For an economy as a whole, income must exceed expenditure.ANS: F DIF: 1 REF: 23-1NAT: Analytic LOC: The study of economics and definitions of economics11. An economy’s income is the same as its expenditure because every transaction has a buyer and a seller. ANS: T DIF: 1 REF: 23-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Income | Expenditure MSC: Definitional12. GDP is the market value of all final goods and services produced by a country’s citizens in a given period oftime.ANS: F DIF: 1 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Definitional13. GDP adds together many different kinds of products into a single measure of the value of economic activity byusing market prices.ANS: T DIF: 1 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Definitional14. U.S. GDP includes the market value of rental housing, but not the market value of owner-occupied housing. ANS: F DIF: 2 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Interpretive15. U.S. GDP excludes the production of most illegal goods.ANS: T DIF: 2 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economics16. U.S. GDP includes estimates of the value of items that are produced and consumed at home, such as housework and car maintenance.ANS: F DIF: 2 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Applicative17. GDP includes only the value of final goods because the value of intermediate goods is already included in the prices of the final goods.ANS: T DIF: 1 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP | Intermediate goods MSC: Definitional18. Additions to inventory subtract from GDP, and when the goods in inventory are later used or sold, the reductions in inventory add to GDP.ANS: F DIF: 1 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP | Inventory MSC: Definitional19. While GDP includes tangible goods such as books and bug spray, it excludes intangible services such as the services provided by teachers and exterminators.ANS: F DIF: 2 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Applicative20. At a rummage sale, you buy two old books and an old rocking chair; your spending on these items is not included in current GDP.ANS: T DIF: 2 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Applicative21. When an American doctor opens a practice in Bermuda, his production there is part of U.S. GDP.ANS: F DIF: 2 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economics1560 Chapter 23 /Measuring a Nation's Income22. If the U.S. government reports that GDP in the third quarter was $12 trillion at an annual rate, then the amount of income and expenditure during quarter three was $3 trillion.ANS: T DIF: 2 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Applicativedifferent stories about overall economic conditions.ANS: F DIF: 2 REF: 23-2NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP | Income MSC: Interpretive24. Expenditures by households on education are included in the consumption component of GDP.ANS: T DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Consumption MSC: Interpretive25. Most goods whose purchases are included in the investment component of GDP are used to produce other goods.ANS: T DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Investment MSC: Interpretive26. New home construction is included in the consumption component of GDP.ANS: F DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Investment MSC: Interpretive27. Changes in inventory are included in the investment component of GDP.ANS: T DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Investment MSC: Interpretive28. The investment component of GDP refers to financial investment in stocks and bonds.ANS: F DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Investment MSC: Interpretive29. The government purchases component of GDP includes salaries paid to soldiers but not Social Security benefits paid to the elderly.ANS: T DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Government purchases MSC: Interpretive30. If the value of an economy’s imports exceeds the value of that economy’s exports, then net exports is a negative number.ANS: T DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economics31. If someone in the United States buys a surfboard produced in Australia, then that purchase is included in both the consumption component of U.S. GDP and the net exports component of U.S. GDP.ANS: T DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Consumption | Net exports MSC: Applicative32. If consumption is $4000, exports are $300, government purchases are $1000, imports are $400, and investment is $800, then GDP is $5700.ANS: T DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economics33. If exports are $500, GDP is $8000, government purchases are $1200, imports are $700, and investment is $800, then consumption is $6200.ANS: T DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Consumption MSC: Applicative34. If consumption is $1800, GDP is $4300, government purchases are $1000, imports are $700, and investment i s $1200, then exports are $300.ANS: F DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Exports MSC: Applicative35. U.S. GDP was almost $14 billion in 2007.ANS: F DIF: 1 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Definitional36. In 2007, government purchases was the largest component of U.S. GDP.ANS: F DIF: 2 REF: 23-3NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Interpretive37. If total spending rises from one year to the next, then the economy must be producing a larger output of goods and services.ANS: F DIF: 2 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Interpretive38. An increase in nominal U.S. GDP necessarily implies that the United States is producing a larger output of goods and services.TOP: Nominal GDP MSC: Interpretive39. Nominal GDP uses constant base-year prices to place a value on the economy’s production of goods a nd services, while real GDP uses current prices to place a value on the economy’s production of goods and services.ANS: F DIF: 1 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Nominal GDP | Real GDP MSC: Definitional40. Real GDP evaluates current production using prices that are fixed at past levels and therefore shows how the economy’s overall production of goods and services changes over time.ANS: T DIF: 1 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real GDP MSC: Definitional41. The term real GDP refers to a country’s actual GDP as opposed to its estimated GDP.ANS: F DIF: 2 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real GDP MSC: Interpretive42. Changes in real GDP reflect only changes in the amounts being produced.ANS: T DIF: 1 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real GDP MSC: Definitional43. Real GDP is a better gauge of economic well-being than is nominal GDP.ANS: T DIF: 1 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economics1562 Chapter 23 /Measuring a Nation's Income44. Changes in the GDP deflator reflect only changes in the prices of goods and services.ANS: T DIF: 2 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP deflator MSC: Interpretive45. If nominal GDP is $10,000 and real GDP is $8,000, then the GDP deflator is 125.ANS: T DIF: 2 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP deflator MSC: Applicative46. If nominal GDP is $12,000 and the GDP deflator is 80, then real GDP is $15,000.TOP: Real GDP MSC: Applicative47. Economists use the term inflation to describe a situation in whic h the economy’s overall production level isrising.ANS: F DIF: 1 REF: 23-4NAT: Analytic LOC: Unemployment and inflation TOP: InflationMSC: Definitional48. If the GDP deflator in 2006 was 160 and the GDP deflator in 2007 was 180, then the inflation rate in 2007 was12.5%.ANS: T DIF: 2 REF: 23-4NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Applicative49. If the GDP deflator in 2004 was 150 and the GDP deflator in 2005 was 120, then the inflation rate in 2005 was25%.ANS: F DIF: 2 REF: 23-4NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Applicative50. The GDP deflator can be used to take inflation out of nominal GDP.ANS: T DIF: 1 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP deflator MSC: Definitional51. In 2004, the level of U.S. real GDP was close to four times its 1965 l evel.ANS: T DIF: 1 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real GDP MSC: Definitional52. The output of goods and services produced in the United States has grown on average 3.2 percent per year. ANS: T DIF: 1 REF: 23-4NAT: Analytic LOC: Productivity and growthTOP: GrowthMSC: Definitional53. Periods during which real GDP rises are called recessions.ANS: F DIF: 1 REF: 23-4NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Recessions MSC: Definitional54. Recessions are associated with lower incomes, rising unemployment, and falling profits.TOP: Recessions MSC: Definitional55. If real GDP is higher in one country than in another, then we can be sure that the standard of living is higher inthe country with the higher real GDP.ANS: F DIF: 2 REF: 23-5NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real GDP | Standard of living MSC: Interpretive56. Real GDP per person tells us the income and expenditure of the average person in the economy.ANS: T DIF: 1 REF: 23-5NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Real GDP per person MSC: Definitional57. GDP does not directly measure those things that make life worthwhile, but it does measure our ability toobtain many of the inputs into a worthwhile life.ANS: T DIF: 1 REF: 23-5NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Definitional58. GDP does not make adjustments for leisure time, environmental quality, or volunteer work.ANS: T DIF: 2 REF: 23-5NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Interpretive59. Other things equal, in countries with higher levels of real GDP per person, life expectancy and literacy ratesare higher than in countries with lower levels of real GDP per person.ANS: T DIF: 2 REF: 23-5NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: InterpretiveSHORT ANSWER1. GDP is defined as the market value of all final goods and services produced within a country in a given periodof time. In spite of this definition, some production is left out of GDP. Explain why some final goods and services are not included.ANS:GDP excludes some products because they are so difficult to measure. These products include services performed by individuals for themselves and their families, and most goods that are produced and consumed at home and, therefore, never enter the marketplace. In addition, illegal products are not included in GDP even if they can be measured because, by society's definition, they are bads, not goods.DIF: 2 REF: 23-2 NAT: AnalyticLOC: The study of economics and definitions of economics TOP: GDPMSC: Interpretiveincluded directly as part of GDP, but the value of intermediate goods produced and not sold is includeddirectly as part of GDP.ANS:Intermediate goods produced and sold during the year are not included separately as part of GDP because the value of those goods is included in the value of the final goods produced from them. If the intermediate good is produced but not sold during the year, its value is included as inventory investment for the year in which it was produced. If inventory investment was not included as part of GDP, true production would be underestimated for the year the intermediate good went into inventory, and overestimated for the year the intermediate good is used or sold.DIF: 2 REF: 23-2 NAT: AnalyticLOC: The study of economics and definitions of economics TOP: GDP | Intermediate goods MSC: Interpretive1564 Chapter 23 /Measuring a Nation's Income3. Since it is counted as investment, why doesn't the purchase of earthmoving equipment from China by a U.S.corporation increase U.S. GDP?ANS:The purchase of foreign equipment is counted as investment, but GDP measures only the value of production within the geographic borders of the United States. In order to avoid including the value of the imported equipment, imports are subtracted from GDP. Hence, the value of the equipment in investment is canceled by subtracting its value as an import.DIF: 2 REF: 23-3 NAT: AnalyticLOC: The study of economics and definitions of economics TOP: GDP | Investment | Imports MSC: Applicative4. Identify the immediate effect of each of the following events on U.S. GDP and its components.a. James receives a Social Security check.b. John buys an Italian sports car.c. Henry buys domestically produced tools for his construction company.ANS:a. Since this is a transfer payment, there is no change to GDP or to any of its components.b. Consumption and imports will rise and cancel each other out so that there is no change in U.S. G DP.c. This increases the investment component of GDP and so increases GDP.DIF: 2 REF: 23-3 NAT: AnalyticLOC: The study of economics and definitions of economicsTOP: GDP | Transfer payments | Net exports | Investment MSC: Applicative5. Between 1929 and 1933, NNP measured in current prices fell from $96 billion to $48 billion. Over the sameperiod, the relevant price index fell from 100 to 75.a. What was the percentage decline in nominal NNP from 1929 to1933?b. What was the percentage decline in real NNP from 1929 to 1933? Show your work.ANS:a. NNP measured in current prices is nominal NNP. Nominal NNP fell from $96 billion to $48 billion, adecline of 50 percent.($96 b/100) 100 = $96 b. Real NNP in 1933 was ($48 b/75) 100 = $64 b. Real NNP fell from$96 billion to $64 billion, a decline of 33 percent.DIF: 2 REF: 23-4 NAT: AnalyticLOC: The study of economics and definitions of economics TOP: Nominal NNP | Real NNP MSC: Applicative6. You find that your paycheck for the year is higher this year than last. Does that mean that your real incomehas increased? Explain carefully.ANS:Real income is nominal income adjusted for general increase in prices. I f my paycheck is higher this year than last, my nominal income has increased. Whether my real income has increased or not depends on what has happened since last year to the level of prices of things I buy with my income. If the percentage increase in prices is less than the percentage increase in my nominal income, then my real income h as increased. Otherwise, my real income has not increased.DIF: 2 REF: 23-4 NAT: AnalyticLOC: The study of economics and definitions of economicsTOP: Nominal income | Real income MSC: Interpretive7. U.S. real GDP is substantially higher today than it was 60 years ago. What does this tell us, and what does itnot tell us, about the well-being of U.S. residents?ANS:Since this is in real terms, it tells us that the U.S. is able to make a lot more stuff than in the past. Some of the increase in real GDP is probably due to an increase in population, so we could say more if we knew what had happened to real GDP per person. Supposing that there was also an increase in real GDP per person, we can say that the standard of living has risen. Material things are an important part of well-being. Having sufficient amounts of things such as food, shelter, and clothing are fundamental to well-being. Other things such as security, a safe environment, access to safe water, access to medical care, justice, and freedom also matter. However, many of these things are more easily obtained by being able to produce more using fewer resources. Countries with higher real GDP per person tend to have longer life spans, less discrimination towards women, less child labor, and a higher rate of literacy.DIF: 2 REF: 23-5 NAT: AnalyticLOC: The study of economics and definitions of economicsTOP: Real GDP | Economic welfare MSC: InterpretiveSec00 - Measuring a Nation's IncomeMULTIPLE CHOICE1. Statistics that are of particular interest to macroeconomistsa. are largely ignored by the media.b. are widely reported by the media.c. include the equilibrium prices of individual goods and services.d. tell us about a particular household, firm, or market.ANS: B DIF: 2 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Macroeconomics MSC: Interpretiveb. the interaction between households and firms.c. economy-wide phenomena.d. regulations on firms and unions.ANS: C DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Macroeconomics MSC: Definitional3. Which of the following newspaper headlines is more closely related to what microeconomists study than to what macroeconomists study?a. Unemployment rate rises from 5 percent to 5.5 percent.b. Real GDP grows by 3.1 percent in the third quarter.c. Retail sales at stores show large gains.d. The price of oranges rises after an early frost.ANS: D DIF: 2 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Microeconomics | Macroeconomics MSC: Interpretive4. Which of the following questions is more likely to be studied by a microeconomist than a macroeconomist?a. Why do prices in general rise by more in some countries than in others?b. Why do wages differ across industries?c. Why do production and income increase in some periods and not in others?d. How rapidly is GDP currently increasing?ANS: B DIF: 2 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Microeconomics | Macroeconomics MSC: Interpretive1566 Chapter 23 /Measuring a Nation's Income5. Which of the following topics are more likely to be studied by a macroeconomist than by a microeconomist?a. the effect of taxes on the prices of airline tickets, the profitability of automobile-manufacturingfirms, and employment trends in the food-service industryb. the price of beef, wage differences between genders, and antitrust lawsc. how consumers maximize utility, and how prices are established in markets for agriculturalproductsd. the percentage of the labor force that is out of work, and differences in average income fromcountry to countryANS: D DIF: 2 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Microeconomics | Macroeconomics MSC: Interpretive6. We would expect a macroeconomist, as opposed to a microeconomist, to be particularly interested ina. explaining how economic changes affect prices of particular goods.b. devising policies to deal with market failures such as externalities and market power.c. devising policies to promote low inflation.d. identifying those markets that are competitive and those that are not competitive.ANS: C DIF: 2 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Microeconomics | Macroeconomics MSC: Interpretive7. Which of the following is not a question that macroeconomists address?a. Why is average income high in some countries while it is low in others?b. Why does the price of oil rise when war erupts in the Middle East?c. Why do production and employment expand in some years and contract in others?d. Why do prices rise rapidly in some periods of time while they are more stable in other periods? ANS: B DIF: 2 REF: 23-0 NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Macroeconomics MSC: Interpretive8. The basic tools of supply and demand area. useful only in the analysis of economic behavior in individual markets.b. useful in analyzing the overall economy, but not in analyzing individual markets.c. central to microeconomic analysis, but seldom used in macroeconomic analysis.d. central to macroeconomic analysis as well as to microeconomic analysis.ANS: D DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Demand | Supply MSC: Definitional9. Which of the following statistic is usually regarded as the best single measure of a society’s economic well-being?a. the unemployment rateb. the inflation ratec. gross domestic productd. the trade deficitANS: C DIF: 1 REF: 23-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: DefinitionalSec01 - Measuring a Nation's Income - The Economy's Income and Expenditure MULTIPLE CHOICE1. Which of the following statements about GDP is correct?a. GDP measures two things at once: the total income of everyone in the economy and the unemployment rate of the economy’s labor force.b. Money continuously flows from households to government and then back to households, and GDP measures this flow of money.c. GDP is to a nation’s economy as household income is to a household.d. All of the above are correct.ANS: C DIF: 2 REF: 23-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Interpretive2. Gross domestic product measures two things at once:a. the total spending of everyone in the economy and the total saving of everyone in the economy.b. the total income of everyone in the economy and the total expenditure on the economy's output of goods and services.c. the value of the economy's output of goods and services for domestic citizens and the value of the economy's output of goods and services for the rest of the world.d. the total income of households in the economy and the total profit of firms in the economy. ANS: B DIF: 1 REF: 23-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: GDP MSC: Definitional3. For an economy as a whole,a. wages must equal profit.b. consumption must equal saving.c. income must equal expenditure.d. the number of buyers must equal the number of sellers.ANS: C DIF: 2 REF: 23-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Income | Expenditure MSC: Interpretive4. For an economy as a whole, income must equal expenditure becausea. the number of firms is equal to the number of households in an economy.b. international law requires that income equal expenditure.c. every dollar of spending by some buyer is a dollar of income for some seller.d. every dollar of saving by some consumer is a dollar of spending by some other consumer. ANS: C DIF: 2 REF: 23-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Income | Expenditure MSC: Interpretive5. If an economy’s GDP rises, then it must be the case that the economy’sa. income rises and saving falls.b. income and saving both rise.c. income rises and expenditure falls.d. income and expenditure both rise.ANS: D DIF: 2 REF: 23-1NAT: Analytic LOC: The study of economics and definitions of economics TOP: Income | Expenditure MSC: Interpretive。

毕马威经典24、36题中文翻译版本

KPMG经典24题The Classical 24 Numerical Reasoning图一：五个地区电话中心暂时的和永久的员工数量1、在SW，实际每小时接待电话数量要低10%，比目标少，问：每小时目标是多少？2、在NW，如果平均接电话数量不变，然后计划暂时和永久职工都增加6%，那么总共会增加多少的电话接待量？3、如果SE地区的人员比例同E地区一样，但总人数不变，那么接待电话的数量变化是多少？4、哪两个地区的永久员工拥有每小时总量最高的电话接待量？图二：下表展示的是三个目的地为期四周的长途车旅行的限制票价和销售目标5、如果将三个地区的销售目标合起来再超过现阶段的5%，那么在这4周期末还需要收入多少来完成目标？6、在接下来的4周，目标是以平均价格每周卖120张票到skipdown，与现阶段相比。

Skipdown的预期收益会增长%？7、对hopworth来说，如果平均票价上升到50gbp，并且销售目标上升到44000gbp，要少卖多少票？8、如果25个座位的长途巴士（去jumpford），上面的所有票都能卖光，那么在4周时间内需要多少辆巴士来完成销售目标？图三：下表展示了新城的通勤人数和使用列车的人数9、如果所有通勤者和列车通勤者在6月---8月的%增长趋势应用到9月----11月，那么11月的不乘列车的通勤者应是多少？10、在10月，不乘列车的人比乘列车的人少多少？11、如果11月的列车使用者比10月下降了0.3百万，且列车使用者中习惯使用“METRO TRAIN”的人为15%，那么多少列车使用者没有使用“METRO TRAIN”？12、7月，%多少的通勤者使用了列车，但没有使用“METRO TRAIN”？四：下图展示了工厂16周的生产力报告，每四周分为一个时期，共四个时期13、时期一和时期二相差了多少个产品单位（假设没有加班）？14、时期二中，员工平均每周加工4小时（以增加他们标准的40小时工作时间），那么这个时期总共支付了多少？15、如果时期四，生产力下降到2.4单位每人每小时，那需要增加多少劳动力以保证这时期的总产量不变？16、工厂考虑将40小时的工作时间减到38小时，如果针对时期三和四，且没有加班的话，那么会减少多少个单位的生产？图五：下图展示了连续两年的汇率17、一个旅行者在第一年买了8000泰铢，第二年转换了一部分为100欧元，另一部分为英镑，问转换了多少英镑？18、如果第一年买了价值1000英镑的欧元，那么在第二年交易的近似的港币是多少？19、在第一1、2年中，泰铢对英镑的数值变化最接近于？（表示为%）20、关于兑换英镑，哪2个币种显示出在（第一年、第二年）最大比例的数值变化图六：下表展示了为期6年地金田的产品统计21、从第一年到第五年，开采矿石数量的增长%是多少？22、在第二年，如果金产出的所有钱是1百万英镑，那么需要开采和磨多少矿？23、如果在第4、5年，一般性通胀率是10%，那么在通胀基础上，金价增长了多少？24、哪两年的每千吨矿石开采引起了最差的收益回报？答案详解1. E(28x200+25x100)/(100%-10%)=90002. C(20x250+16x300) x6%=5883. BRegion E (permanent: temporary)=3:2Region SE Total: 400 Permanent: 150 Temporary: 250(New) Permanent: 400x3/5=240Temporary: 400x2/5=160所以我们可以得出P增加了90人，T减少了90人90x(30-18)=1080(我们可以用其他方法算，但是却不是最节约时间的算法)4．E目测，（SE和SW的P每小时接的电话数是最高的，而且SW的P的人数多，所以总数上SW可定比SE要高。

经济学原理曼昆第五版英文答案Chapter24

经济学原理曼昆第五版英⽂答案Chapter24This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not beresold, copied, or distributed without the prior consent of the publisher.e. If there is 2% deflation, her purchasing power has risen by about 12%. 3. Definition of nominal interest rate: the interest rate as usually reported without acorrection for the effects of inflation . 4. Definition of real interest rate: the interest rate corrected for the effects of inflation . 5. Case Study: Interest Rates in the U.S. Economya. Figure 3 shows real and nominal interest rates from 1965 to the present.b. The nominal interest rate is always greater than the real interest rate in this diagram because there was always inflation during this period.c. Note that in the late 1970s the real interest rate was negative because the inflation rateexceeded the nominal interest rate. SOLUTIONS TO TEXT PROBLEMS:Quick Quizzes 1. The consumer price index measures the overall cost of the goods and services bought by a typical consumer. It is constructed by surveying consumers to determine a basket of goods and services that the typical consumer buys. Prices of these goods and services are used to compute the cost of the basket at different times, and a base year is chosen. To computethe index, we divide the cost of the market basket in the current year by the cost of the market basket in the base year and multiply by 100. 2. Since Henry Ford paid his workers $5 a day in 1914 and the consumer price index was 10 in1914 and 207 in 2007, then the Ford paycheck was worth $5 × 207 / 10 = $103.50 a day in2007 dollars.Questions for Review 1. A 10% increase in the price of chicken has a greater effect on the consumer price index thana 10% increase in the price of caviar because chicken is a bigger part of the average consumer's market basket. 2. The three problems in the consumer price index as a measure of the cost of living are: (1) substitution bias, which arises because people substitute toward goods that have become relatively less expensive; (2) the introduction of new goods, which are not reflected quickly in the CPI; and (3) unmeasured quality change.3. If the price of a Navy submarine rises, there is no effect on the consumer price index,because Navy submarines are not consumer goods. But the GDP price index is affected,because Navy submarines are included in GDP as a part of government purchases.4. Because the overall price level doubled, but the price of the candy bar rose sixfold, the realprice (the price adjusted for inflation) of the candy bar tripled.5. The nominal interest rate is the rate of interest paid on a loan in dollar terms. The realinterest rate is the rate of interest corrected for inflation. The real interest rate is the nominalinterest rate minus the rate of inflation.Problems and Applications1. Many answers are possible.2. a. The percentage change in the price of tennis balls is (2 – 2)/2 × 100% = 0%.The percentage change in the price of golf balls is (6 – 4)/4 × 100% = 50%.The percentage change in the price of Gatorade is (2 – 1)/1 × 100% = 100%.b. The cost of the market basket in 2009 is ($2 × 100) + ($4 × 100) + ($1 × 200) = $200+ $400 + $200 = $800.The cost of the market basket in 2010 is ($2 × 100) + ($6 × 100) + ($2 × 200) = $200+ $600 + $400 = $1,200.The percentage change in the cost of the market basket from 2009 to 2010 is (1,200 –800)/800 × 100% = 50%.c. This would lower my estimation of the inflation rate because the value of a bottle ofGatorade is now greater than before. The comparison should be made on a per-ouncebasis.d. More flavors enhance consumers’ well-being. Thus, this would be considered a change inquality and would also lower my estimate of the inflation rate.3. a. Find the price of each good in each year:Year Cauliflower Broccoli Carrots2008 $2 $1.50 $0.102009 $3 $1.50 $0.20b. If 2008 is the base year, the market basket used to compute the CPI is 100 heads ofcauliflower, 50 bunches of broccoli, and 500 carrots. We must now calculate the cost ofthe market basket in each year:2008: (100 x $2) + (50 x $1.50) + (500 x $.10) = $3252009: (100 x $3) + (50 x $1.50) + (500 x $.20) = $475Then, using 2008 as the base year, we can compute the CPI in each year:2008: $325/$325 x 100 = 1002009: $475/$325 x 100 = 146This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not beresold, copied, or distributed without the prior consent of the publisher.c. We can use the CPI to compute the inflation rate for 2009: (146 ? 100)/100 x 100% = 46%4. a. The cost of the market basket in 2009 is (1 × $40) + (3 × $10) = $40 + $30 = $70. The cost of the market basket in 2010 is (1 × $60) + (3 × $12) = $60 + $36 = $96. Using 2009 as the base year, we can compute the CPI in each year:2009: $70/$70 x 100 = 100 20109: $96/$70 x 100 = 137.14 We can use the CPI to compute the inflation rate for 2010: (137.14 ? 100)/100 x 100% = 37.14%b. Nominal GDP for 2009 = (10 × $40) + (30 × $10) = $400 + $300 = $700. Nominal GDP for 2010 = (12 × $60) + (50 × $12) = $720 + $600 = $1,320. Real GDP for 2009 = (10 × $40) + (30 × $10) = $400 + $300 = $700.Real GDP for 2010 = (12 × $40) + (50 × $10) = $480 + $500 = $980. The GDP deflator for 2009 = (700/700) × 100 = 100. The GDP deflator for 2010 = (1,320/980) × 100 = 134.69.The rate of inflation for 2010 = (134.69 – 100)/100 × 100% = 34.69%. c. No, it is not the same. The rate of inflation calculated by the CPI holds the basket of goods and services constant, while the GDP deflator allows it to change.5. a. Because the increase in cost was considered a quality improvement, there was no increase registered in the CPI. b. The argument in favor of this is that consumers are getting a better good than before, so the price increase equals the improvement in quality. The problem is that the increased cost might exceed the value of the improvement in air quality, so consumers are worseoff. In this case, it would be better for the CPI to at least partially reflect the higher cost. 6. a. introduction of new goods; b. unmeasured quality change; c. substitution bias; d. unmeasured quality change; e. substitution bias 7. a. ($0.75 ?$0.15)/$0.15 x 100% = 400%.b. ($14.32 ? $3.23)/$3.23 x 100% = 343%.c. In 1970: $0.15/($3.23/60) = 2.8 minutes. In 2000: $0.75/($14.32/60) = 3.1 minutes.d. Workers' purchasing power fell in terms of newspapers.provide the elderly with an improvement in their standard of living each year because the CPI overstates inflation and Social Security payments are tied to the CPI.b. Because the elderly consume more health care than younger people do, and becausehealth care costs have risen faster than overall inflation, it is possible that the elderly are worse off. To investigate this, you would need to put together a market basket for theelderly, which would have a higher weight on health care. You would then compare therise in the cost of the "elderly" basket with that of the general basket for CPI.9. In deciding how much income to save for retirement, workers should consider the realinterest rate, because they care about their purchasing power in the future, not the number of dollars they will have.10. a. When inflation is higher than was expected, the real interest rate is lower than expected.For example, suppose the market equilibrium has an expected real interest rate of 3%and people expect inflation to be 4%, so the nominal interest rate is 7%. If inflationturns out to be 5%, the real interest rate is 7% minus 5% equals 2%, which is less than the 3% that was expected.b. Because the real interest rate is lower than was expected, the lender loses and theborrower gains. The borrower is repaying the loan with dollars that are worth less thanwas expected.c. Homeowners in the 1970s who had fixed-rate mortgages from the 1960s benefited fromthe unexpected inflation, while the banks that made the mortgage loans were harmed.。

chapter 24

SOLUTIONS TO TEXT PROBLEMS:Quick Quizzes1. The consumer price index tries to measure the overall cost of the goods and services bought by atypical consumer. It is constructed by surveying consumers to fix a basket of goods and services that the typical consumer buys, finding the prices of the goods and services over time, computing the cost of the basket at different times, and then choosing a base year. To compute the index, we divide the cost of the market basket in the current year by the cost of the market basket in the base year and multiply by 100.2. Since Henry Ford paid his workers $5 a day in 1914 and the consumer price index was 10 in 1914and 177 in 2001, then the Ford paycheck was worth $5 177/10 = $88.50 a day in 2001 dollars. Questions for Review1. A 10 percent increase in the price of chicken has a greater effect on the consumer price index thana 10 percent increase in the price of caviar because chicken is a bigger part of the averageconsumer's market basket.2. The three problems in the consumer price index as a measure of the cost of living are: (1)substitution bias, which arises because people substitute toward goods that have become relatively less expensive; (2) the introduction of new goods, which are not reflected quickly in the CPI; and (3) unmeasured quality change.3. If the price of a Navy submarine rises, there is no effect on the consumer price index, since Navysubmarines are not consumer goods. But the GDP price index is affected, since Navy submarines are included in GDP as a part of government purchases.4. Since the overall price level doubled, but the price of the candy bar rose sixfold, the real price (theprice adjusted for inflation) of the candy bar tripled.5. The nominal interest rate is the rate of interest paid on a loan in dollar terms. The real interestrate is the rate of interest corrected for inflation. The real interest rate is the nominal interest rate minus the rate of inflation.Problems and Applications1. a. The price of tennis balls increases 0 percent; the price of tennis racquets increases 50percent [=($60-$40)/$40 x 100%]; the price of Gatorade increases 100 percent [= ($2 -$1)/$1 x 100%].To find the percentage change in the overall price level, follow these steps:1) Determine the fixed basket of goods: 100 balls, 10 racquets, 200 Gatorades2) Find the price of each good in each year:13) Compute the cost of the basket of goods in each year:2001: (100 x $2) + (10 x $40) + (200 x $1) = $8002002: (100 x $2) + (10 x $60) + (200 x $2) = $1,2004) Choose one year as a base year (2001) and compute the CPI in each year:2001: $800/$800 x 100 = 1002002: $1,200/$800 x 100 = 1505) Use the CPI to compute the inflation rate from the previous year:2002: (150 - 100)/100 x 100% = 50%b. Tennis racquets are less expensive relative to Gatorade, since their price rose 50 percentwhile the price of Gatorade rose 100 percent. The well-being of some people changesrelative to the well-being of others. Those who purchase a lot of Gatorade become worseoff relative to those who purchase a lot of tennis racquets or tennis balls.2. To find the percentage change in the overall price level, follow these steps:a. Determine the fixed basket of goods: 100 heads of cauliflower, 50 bunches of broccoli, 500carrots.b. Find the price of each good in each year:c. Compute the cost of the basket of goods in each year:2001: (100 x $2) + (50 x $1.50) + (500 x $.10) = $3252002: (100 x $3) + (50 x $1.50) + (500 x $.20) = $475d. Choose one year as a base year (2001) and compute the CPI in each year:2001: $325/$325 x 100 = 1002002: $475/$325 x 100 = 146e. Use the CPI to compute the inflation rate from the previous year:2002: (146-100)/100 x 100% = 46%3. Many answers are possible.4. a. Since the increase in cost was considered a quality improvement, there was no increaseregistered in the CPI.b. The argument in favor of this is that consumers are getting a better good than before, sothe price increase equals the improvement in quality. The problem is that the increasedcost might exceed the value of the improvement in air quality, so consumers are worse off.In this case, it would be better for the CPI to at least partially reflect the higher cost.5. a. introduction of new goods; b. unmeasured quality change; c. substitution bias; d.unmeasured quality change; e. substitution bias6. a. ($0.75 - $0.15)/$0.15 x 100% = 400%.b. ($14.26 - $3.36)/$3.36 x 100% = 324%.c. In 1970: $.15/($3.36/60) = 2.7 minutes. In 2000: $.75/($14.26/60) = 3.2 minutes.d. Workers' purchasing power fell in terms of newspapers.7. a. If the elderly consume the same market basket as other people, Social Security wouldprovide the elderly with an improvement in their standard of living each year because theCPI overstates inflation and Social Security payments are tied to the CPI.b. Since the elderly consume more health care than younger people, and since health carecosts have risen faster than overall inflation, it is possible that the elderly are worse off.To investigate this, you would need to put together a market basket for the elderly, whichwould have a higher weight on health care. You would then compare the rise in the costof the "elderly" basket with that of the general basket for CPI.8. Many answers are possible. A common answer may be that as students, they spend a greaterproportion of their income on tuition and books than the typical household. If the prices of tuition and books have risen faster than average prices, students face a higher inflation rate than thetypical household.9. When bracket creep occurred, inflation increased people's nominal incomes, pushing them intohigher tax brackets, so they had to pay a higher proportion of their incomes in taxes, even though they were not getting higher real incomes. As a result, real tax revenue rose.10. In deciding how much income to save for retirement, workers should consider the real interest rate,since they care about their purchasing power in the future, not the number of dollars they willhave.11. a. When inflation is higher than was expected, the real interest rate is lower than expected.For example, suppose the market equilibrium has an expected real interest rate of 3percent and people expect inflation to be 4 percent, so the nominal interest rate is 7percent. If inflation turns out to be 5 percent, the real interest rate is 7 percent minus 5percent equals 2 percent, which is less than the 3 percent that was expected.b. Since the real interest rate is lower than was expected, the lender loses and the borrowergains. The borrower is repaying the loan with dollars that are worth less than wasexpected.c. Homeowners in the 1970s who had fixed-rate mortgages from the 1960s benefited fromthe unexpected inflation, while the banks that made the mortgage loans were harmed.。

曼昆经济学原理英文版文案加习题答案15章

MONOPOLISTIC COMPETITIONWHAT’S NEW IN THE S EVENTH EDITION:There are no major changes to this chapter.LEARNING OBJECTIVES:By the end of this chapter, students should understand:what market structures lie between monopoly and competition.competition among firms that sell differentiated products.how the outcomes under monopolistic competition and under perfect competition compare.the desirability of outcomes in monopolistically competitive markets.the debate over the effects of advertising.the debate over the role of brand names.CONTEXT AND PURPOSE:Chapter 16 is the fourth chapter in a five-chapter sequence dealing with firm behavior and the organization of industry. The previous two chapters developed the two extreme forms of market structure—competition and monopoly. The market structure that lies between competition and monopoly is known as imperfect competition. There are two types of imperfect competition—monopolistic competition and oligopoly. This chapter addresses monopolistic competition while the final chapter in the sequence addresses oligopoly. The analysis in this chapter is again based on the cost curves developed in Chapter 13.The purpose of Chapter 16 is to address monopolistic competition—a market structure in which many firms sell products that are similar but not identical. Monopolistic competition differs from perfect competition because each of the many sellers offers a somewhat different product. As a result, monopolistically competitive firms face a downward-sloping demand curve while competitive firms face a horizontal demand curve at the market price. Monopolistic competition is extremely common.KEY POINTS:A monopolistically competitive market is characterized by three attributes: many firms, differentiatedproducts, and free entry.The long-run equilibrium in a monopolistically competitive market differs from that in a perfectly competitive market in two related ways. First, each firm in a monopolistically competitive market has excess capacity. That is, it chooses a quantity that puts it on the downward-sloping portion of the average-total-cost curve. Second, each firm charges a price above marginal cost.Monopolistic competition does not have all of the desirable properties of perfect competition. There is the standard deadweight loss of monopoly caused by the markup of price over marginal cost. In addition, the number of firms (and thus the variety of products) can be too large or too small. In practice, the ability of policymakers to correct these inefficiencies is limited.The product differentiation inherent in monopolistic competition leads to the use of advertising and brand names. Critics of advertising and brand names argue that firms use them to manipulate consumers’ tastes and to reduce competition. Defenders of advertising and brand names argue that firms use them to informconsumers and to compete more vigorously on price and product quality.CHAPTER OUTLINE:I. Between Monopoly and Perfect CompetitionA. The typical firm has some market power, but its market power is not as great as that described bymonopoly.B. Firms in imperfect competition lie somewhere between the competitive model and the monopoly model.C. Definition of oligopoly: a market structure in which only a few sellers offer similar or identical products.1. Economists measure a market’s domination by a small number of firms with a statistic called aconcentration ratio.2. The concentration ratio is the percentage of total output in the market supplied by the four largestfirms.3. In the . economy, most industries have a four-firm concentration ratio under 50%.D. Definition of monopolistic competition: a market structure in which many firms sell products that aresimilar but not identical.1. Characteristics of Monopolistic Competitiona. Many Sellersb. Product Differentiationc. Free EntryE. Figure 1 summarizes the four types of market structure. Note that it is the number of firms and the typeof product sold that distinguishes one market structure from another.II. Competition with Differentiated ProductsA. The Monopolistically Competitive Firm in the Short Run1. Each firm in monopolistic competition faces a downward-sloping demand curve because its product isdifferent from those offered by other firms.2. The monopolistically competitive firm follows a monopolist's rule for maximizing profit.a. It chooses the output level where marginal revenue is equal to marginal cost.b. It sets the price using the demand curve to ensure that consumers will demand exactly theamount produced.Figure 23. We can determine whether or not the monopolistically competitive firm is earning a profit or loss bycomparing price and average total cost.a. If P > ATC, the firm is earning a profit.b. If P < ATC, the firm is earning a loss.c. If P = ATC, the firm is earning zero economic profit.B. The Long-Run Equilibrium1. When firms in monopolistic competition are making profit, new firms have an incentive to enter themarket.a. This increases the number of products from which consumers can choose.b. Thus, the demand curve faced by each firm shifts to the left.c. As the demand falls, these firms experience declining profit.2. When firms in monopolistic competition are incurring losses, firms in the market will have anincentive to exit.a. Consumers will have fewer products from which to choose.b. Thus, the demand curve for each firm shifts to the right.c. The losses of the remaining firms will fall.3. The process of exit and entry continues until the firms in the market are earning zero profit.a. This means that the demand curve and the average-total-cost curve are tangent to each other.b. At this point, price is equal to average total cost and the firm is earning zero economic profit. Figure 3Remember that students have a hard time understanding why a firm will continue tooperate if it is earning “only” zero economic profit. Remind them that zero economic profitmeans that firms are earning an accounting profit equal to their implicit costs.Point out to students that, just like firms in perfect competition, firms in monopolisticcompetition also earn zero economic profit in the long run. Show them that this result occursbecause firms can freely enter the market when profits occur, driving the level of profits tozero. Any market with no barriers to entry will see zero economic profit in the long run.4. There are two characteristics that describe the long-run equilibrium in a monopolistically competitivemarket.a. Price exceeds marginal cost (due to the fact that each firm faces a downward-sloping demandcurve).b. Price equals average total cost (due to the freedom of entry and exit).C. Monopolistic versus Perfect CompetitionFigure 41. Excess Capacitya. The quantity of output produced by a monopolistically competitive firm is smaller than thequantity that minimizes average total cost (the efficient scale).b. This implies that firms in monopolistic competition have excess capacity, because the firm couldincrease its output and lower its average total cost of production.c. Because firms in perfect competition produce where price is equal to the minimum average totalcost, firms in perfect competition produce at their efficient scale.2. Markup over Marginal Costa. In monopolistic competition, price is greater than marginal cost because the firm has somemarket power.b. In perfect competition, price is equal to marginal cost.D. Monopolistic Competition and the Welfare of Society1. One source of inefficiency is the markup over marginal cost. This implies a deadweight loss (similar tothat caused by monopolies).2. Because there are so many firms in this type of market structure, regulating these firms would bedifficult.3. Also, forcing these firms to set price equal to marginal cost would force them out of business(because they are already earning zero economic profit).4. There are also externalities associated with entry.a. The product-variety externality occurs because as new firms enter, consumers get someconsumer surplus from the introduction of a new product. Note that this is a positive externality.b. The business-stealing externality occurs because as new firms enter, other firms lose customersand profit. Note that this is a negative externality.c. Depending on which externality is larger, a monopolistically competitive market could have toofew or too many products.5. In the News: Insufficient Variety as a Market Failurea. Firms may insufficiently service consumers with unusual preferences in markets with large fixedcostsb. This article from Slate describes how some consumers get left out of the market because of thehigh fixed costs associated with creating additional varieties of a product.III. AdvertisingA. The Debate over Advertising1. The Critique of Advertisinga. Firms advertise to manipulate people's tastes.b. Advertising impedes competition because it increases the perception of product differentiationand fosters brand loyalty. This means that consumers will be less concerned with pricedifferences among similar goods.2. The Defense of Advertisinga. Firms use advertising to provide information to consumers.b. Advertising fosters competition because it allows consumers to be better informed about all ofthe firms in the market.3. Case Study: Advertising and the Price of Eyeglassesa. In the United States during the 1960s, states differed on whether or not they allowed advertisingfor optometrists.b. In the states that prohibited advertising, the average price paid for a pair of eyeglasses in 1963was $33; in states that allowed advertising, the average price was $26 (a difference of more than20%).B. Advertising as a Signal of Quality1. The willingness of a firm to spend a large amount of money on advertising may be a signal toconsumers about the quality of the product being offered.2. Example: Kellogg and Post have each developed a new cereal that would sell for $3 per box. (Assumethat the marginal cost of producing the cereal is zero.) Each company knows that if it spends $10million on advertising, it will get one million new consumers to try the product. If consumers like the product, they will buy it again.a. Post has discovered through market research that its new cereal is not very good. After buying itonce, consumers would not likely buy it again. Thus, it will only earn $3 million in revenue, whichwould not be enough to pay for the advertising. Therefore, it does not advertise.b. Kellogg knows that its cereal is great. Each person that buys it will likely buy one box per monthfor the next year. Therefore, its sales would be $36 million, which is more than enough to justifythe advertisement.c. By its willingness to spend money on advertising, Kellogg signals to consumers the quality of itscereal.3. Note that the content of the advertisement is unimportant; what is important is that consumersknow that the advertisements are expensive.C. Brand Names1. In many markets there are two types of firms; some firms sell products with widely recognized brandnames while others sell generic substitutes.2. Critics of brand names argue that they cause consumers to perceive differences that do not reallyexist.3. Economists have defended brand names as a useful way to ensure that goods are of high quality.a. Brand names provide consumers with information about quality when quality cannot be judgedeasily in advance of purchase.b. Brand names give firms an incentive to maintain high quality, because firms have a financialstake in maintaining the reputation of their brand names.SOLUTIONS TO TEXT PROBLEMS:Quick Quizzes1. Oligopoly is a market structure in which only a few sellers offer similar or identical products.Examples include the market for breakfast cereals and the world market for crude oil. Monopolisticcompetition is a market structure in which many firms sell products that are similar but not identical.Examples include the markets for novels, movies, restaurant meals, and computer games.2. The three key attributes of monopolistic competition are: (1) there are many sellers; (2) each firmproduces a slightly different product; and (3) firms can enter or exit the market freely.Figure 1 shows the long-run equilibrium in a monopolistically competitive market. This equilibriumdiffers from that in a perfectly competitive market because price exceeds marginal cost and the firmdoes not produce at the minimum point of average total cost but instead produces at less than theefficient scale.Figure 13. Advertising may make markets les s competitive if it manipulates people’s tastes rather than beinginformative. Advertising may give consumers the perception that there is a greater differencebetween two products than really exists. That makes the demand curve for a product more inelastic,so the firms can then charge greater markups over marginal cost. However, some advertising couldmake markets more competitive because it sometimes provides useful information to consumers,allowing them to take advantage of price differences more easily. Advertising also facilitates entrybecause it can be used to inform consumers about a new product. In addition, expensive advertisingcan be a signal of quality.Brand names may be beneficial because they provide information to consumers about the quality ofgoods. They also give firms an incentive to maintain high quality, since their reputations areimportant. But brand names may be criticized because they may simply differentiate products thatare not really different, as in the case of drugs that are identical with the brand-name drug selling at amuch higher price than the generic drug.Questions for Review1. The three attributes of monopolistic competition are: (1) there are many sellers; (2) each sellerproduces a slightly different product; and (3) firms can enter or exit the market without restriction.Monopolistic competition is like monopoly because firms face a downward-sloping demand curve, soprice exceeds marginal cost. Monopolistic competition is like perfect competition because, in the longrun, price equals average total cost, as free entry and exit drive economic profit to zero.2. In Figure 2, a firm has demand curve D1 and marginal-revenue curve MR1. The firm is making profitsbecause at quantity Q1, price (P1) is above average total cost (ATC). Those profits induce other firmsto enter the industry, causing the demand curve to shift to D2 and the marginal-revenue curve to shiftto MR2. The result is a decline in quantity to Q2, at which point the price (P2) equals average total cost (ATC), so profits are now zero.Figure 23. Figure 3 shows the long-run equilibrium in a monopolistically competitive market. Price equalsaverage total cost. Price is above marginal cost.Figure 34. Because, in equilibrium, price is above marginal cost, a monopolistic competitor produces too littleoutput. But this is a hard problem to solve because: (1) the administrative burden of regulating the large number of monopolistically competitive firms would be high; and (2) the firms are earning zero economic profits, so forcing them to price at marginal cost means that firms would lose money unless the government subsidized them.5. Advertising might reduce economic well-being because it manipulates people's tastes and impedescompetition by making products appear more different than they really are. But advertising might increase economic well-being by providing useful information to consumers and fosteringcompetition.6. Advertising with no apparent informational content might convey information to consumers if itprovides a signal of quality. A firm will not be willing to spend much money advertising a low-qualitygood, but may be willing to spend significantly more to advertise a high-quality good.7. The two benefits that might arise from the existence of brand names are: (1) brand names provideconsumers information about quality when quality cannot be easily judged in advance; and (2) brandnames give firms an incentive to maintain high quality to maintain the reputation of their brandnames.Quick Check Multiple Choice1. b2. d3. a4. d5. a6. cProblems and Applications1. a. Tap water is a monopoly because there is a single seller of tap water to a household .b. Bottled water is a monopolistically competitive market. There are many sellers of bottled water,but each firm tries to differentiate its own brand from the rest.c. The cola market is an oligopoly. There are only a few firms that control a large portion of themarket.d. The beer market is an oligopoly. There are only a few firms that control a large portion of themarket.2. a. The market for wooden #2 pencils is perfectly competitive because pencils by any manufacturerare identical and there are a large number of manufacturers.b. The market for copper is perfectly competitive, because all copper is identical and there are alarge number of producers.c. The market for local electricity service is monopolistic because it is a natural monopoly—it ischeaper for one firm to supply all the output.d. The market for peanut butter is monopolistically competitive because different brand namesexist with different quality characteristics.e. The market for lipstick is monopolistically competitive because lipstick from different firmsdiffers slightly, but there are a large number of firms that can enter or exit without restriction.3. a. A firm in monopolistic competition sells a differentiated product from its competitors.b. A firm in monopolistic competition has marginal revenue less than price.c. Neither a firm in monopolistic competition nor in perfect competition earns economic profit inthe long run.d. A firm in perfect competition produces at the minimum average total cost in the long run.e. Both a firm in monopolistic competition and a firm in perfect competition equate marginalrevenue and marginal cost.f. A firm in monopolistic competition charges a price above marginal cost.4. a. Both a firm in monopolistic competition and a monopoly firm face a downward-sloping demandcurve.b. Both a firm in monopolistic competition and a monopoly firm have marginal revenue that is lessthan price.c. A firm in monopolistic competition faces the entry of new firms selling similar products.d. A monopoly firm earns economic profit in the long run.e. Both a firm in monopolistic competition and a monopoly firm equate marginal revenue andmarginal cost.f. Neither a firm in monopolistic competition nor a monopoly firm produces the socially efficientquantity of output.5. a. The firm is not maximizing profit. For a firm in monopolistic competition, price is greater thanmarginal revenue. If price is below marginal cost, marginal revenue must be less than marginalcost. Thus, the firm should reduce its output to increase its profit.b. The firm may be maximizing profit if marginal revenue is equal to marginal cost. However, thefirm is not in long-run equilibrium because price is less than average total cost. In this case, firms will exit the industry and the demand facing the remaining firms will rise until economic profit is zero.c. The firm is not maximizing profit. For a firm in monopolistic competition, price is greater thanmarginal revenue. If price is equal to marginal cost, marginal revenue must be less than marginal cost. Thus, the firm should reduce its output to increase its profit.d. The firm could be maximizing profit if marginal revenue is equal to marginal cost. The firm is inlong-run equilibrium because price is equal to average total cost. Therefore, the firm is earningzero economic profit.6. a. Figure 4 illustrates the market for Sparkle toothpaste in long-run equilibrium. The profit-maximizing level of output is Q M and the price is P M.Figure 4b. Sparkle's profit is zero, because at quantity Q M, price equals average total cost.c. The consumer surplus from the purchase of Sparkle toothpaste is areas A + B. The efficient levelof output occurs where the demand curve intersects the marginal-cost curve, at Q C. Thedeadweight loss is area C, the area above marginal cost and below demand, from Q M to Q C.d. If the government forced Sparkle to produce the efficient level of output, the firm would losemoney because average total cost would exceed price, so the firm would shut down. If thathappened, Sparkle's customers would earn no consumer surplus.7. a. As N rises, the demand for each firm’s product falls. As a result, each firm’s demand curve willshift left.b. The firm will produce where MR = MC:100/N– 2Q = 2QQ = 25/Nc. 25/N = 100/N–PP = 75/Nd. Total revenue = P Q = 75/N 25/N = 1875/N2Total cost = 50 + Q2 = 50 + (25/N)2 = 50 + 625/N2Profit = 1875/N2– 625/N2– 50 = 1250/N2– 50e. In the long run, profit will be zero. Thus:1250/N2– 50 = 01250/N2 = 50N = 58. Figure 5 shows the cost, marginal revenue and demand curves for the firm under both conditions.Figure 5a. The price will fall from P MC to the minimum average total cost (P C) when the market becomesperfectly competitive.b. The quantity produced by a typical firm will rise to Q C, which is at the efficient scale of output.c. Average total cost will fall as the firm increases its output to the efficient scale.d. Marginal cost will rise as output rises. Marginal cost is now equal to price.e. Profit will not change. In either case, the market will move to long-run equilibrium where allfirms will earn zero economic profit.9. a. A family-owned restaurant would be more likely to advertise than a family-owned farm becausethe output of the farm is sold in a perfectly competitive market, in which there is no reason toadvertise, while the output of the restaurant is sold in a monopolistically competitive market.b. A manufacturer of cars is more likely to advertise than a manufacturer of forklifts because thereis little difference between different brands of industrial products like forklifts, while there aregreater perceived differences between consumer products like cars. The possible return toadvertising is greater in the case of cars than in the case of forklifts.c. A company that invented a very comfortable razor is likely to advertise more than a companythat invented a less comfortable razor that costs the same amount to make because thecompany with the very comfortable razor will get many repeat sales over time to cover the cost of the advertising, while the company with the less comfortable razor will not.10. a. Figure 6 shows Sleek’s demand, marginal-revenue, marginal-cost, and average-total-cost curves.The firm will maximize profit at an output level of Q * and a price of P *. The shaded are shows the firm’s profits.Figure 6b. In the long run, firms will enter, shifting the demand for Sleek’s product to the left. Its price andoutput will fall. Firms will enter until profits are equal to zero (as shown in Figure 7).Figure 7c. As consumers become more focused on the stylistic differences in brands, they will be lessfocused on price. This will make the demand for each firm’s products more price inelastic. The demand curves may become relatively steeper, allowing Sleek to charge a higher price. If these stylistic features cannot be copied, they may serve as a barrier to entry and allow Sleek to earn profit in the long run.d. A firm in monopolistic competition produces where marginal revenue is greater than zero. Thismeans that firm must be operating on the elastic portion of its demand curve.。

cost accounting chapter 23

Cost Accounting, 14e (Horngren/Datar/Rajan)Chapter 23 Performance Measurement, Compensation, and Multinational Considerations Objective 23.11) A report that measures financial and nonfinancial performance measures for various organization units in a single report is called a(n):A) balanced scorecardB) financial report scorecardC) imbalanced scorecardD) unbalanced scorecardAnswer: ADiff: 1Terms: Balanced ScorecardObjective: 1AACSB: Reflective thinking2) Customer-satisfaction measures are an example of the:A) goal-congruence approachB) balanced scorecard approachC) financial report scorecard approachD) investment success approachAnswer: BDiff: 1Terms: Balanced ScorecardObjective: 1AACSB: Reflective thinking3) An example of a performance measure with a long-run time horizon is:A) direct materials efficiency variancesB) overhead spending variancesC) number of new patents developedD) All of these answers are correct.Answer: CDiff: 2Terms: Balanced ScorecardObjective: 1AACSB: Reflective thinking4) Does operating income best measure a subunit's financial performance? This question is considered part of which step in designing an accounting-based performance measure?A) Choose performance measures that align with top management's financial goals.B) Choose the time horizon of each performance measure.C) Choose a definition for each performance measure.D) Choose a measurement alternative for each performance measure.Answer: ADiff: 2Terms: Balanced ScorecardObjective: 1AACSB: Reflective thinking5) Should assets be defined as total assets or net assets? This question is considered part of which step in designing an accounting-based performance measure?A) Choose performance measures that align with top management's financial goals.B) Choose the time horizon of each performance measure.C) Choose a definition for each performance measure.D) Choose a measurement alternative for each performance measure.Answer: CDiff: 2Terms: return on investment (ROI)Objective: 1AACSB: Reflective thinking6) Should assets be measured at historical cost or current cost? This question is considered part of which step in designing an accounting-based performance measure?A) Choose performance measures that align with top management's financial goals.B) Choose the time horizon of each performance measure.C) Choose a definition for each performance measure.D) Choose a measurement alternative for each performance measure.Answer: DDiff: 2Terms: current cost, return on investment (ROI)Objective: 1AACSB: Reflective thinking7) Which of the following statements about designing an accounting-based performance measure is FALSE?A) The steps may be followed in a random order.B) The issues considered in each step are independent.C) Management's beliefs are present during the analyses.D) Behavioral criteria are important when evaluating the steps.Answer: BDiff: 2Terms: Balanced ScorecardObjective: 1AACSB: Reflective thinking8) Many common performance measures, such as customer satisfaction, rely on internal financial accounting information.Answer: FALSEExplanation: Customer satisfaction would be obtained by surveys that are not in the financial accounting records.Diff: 1Terms: Balanced ScorecardObjective: 1AACSB: Analytical skills9) Some companies present financial and nonfinancial performance measures for various organization units in a single report called the "balanced scorecard."Answer: TRUEDiff: 1Terms: Balanced ScorecardObjective: 1AACSB: Analytical skills10) The "balanced scorecard" in most organizations is broken down into the following categories: financial perspective, customer perspective, internal business-process perspective, and productivity perspective.Answer: FALSEExplanation: The "balanced scorecard" in most organizations is broken down into the following categories: financial perspective, customer perspective, internal business-process perspective, and learning-and-growth perspective.Diff: 1Terms: Balanced ScorecardObjective: 1AACSB: Reflective thinking11) The first step in designing accounting based performance measures is to choose a target level of performance and feedback mechanism.Answer: FALSEExplanation: The first step in designing accounting based performance measures is to choose performance measures that align with top management's financial goals.Diff: 1Terms: performance measureObjective: 1AACSB: Reflective thinking12) Assume you are evaluating a manufacturing company. Match the various organizational activities and concepts with the performance measures listed. Some items may have more than one match. Activities:1. Change in revenues2. Cycle time3. Economic order quantity4. Manufacturing defects5. Market share6. New products7. On-time delivery8. Operating income9. Product reliability10. Time-to-marketPerformance measure:__________ a. Profitability__________ b. Customer satisfaction__________ c. Innovation__________ d. Efficiency, quality, and timeAnswer:1, 8 a. Profitability5, 7, 9 b. Customer satisfaction6, 10 c. Innovation2, 3, 4, 7, 9, 10 d. Efficiency, quality, and timeDiff: 2Terms: Balanced ScorecardObjective: 1AACSB: Analytical skills13) Designing an accounting based performance measure requires six steps. List each step. For three of the steps, describe a question that must be resolved as part of the implementation process.Answer:1. Choose performance measures that align with top management's goals.Does operating income, return on assets, or revenues best measure a subunit's financial goals?2. Choose the time horizon of each performance measure.Should the performance measures be calculated for one year or a multiyear time horizon?3. Choose a definition for each performance measure.Should assets be defined as total assets or net assets?4. Choose a measurement alternative for each performance measure.Should assets be measured at historical cost or current cost?5. Choose a target level of performance.Should all subunits have the same targets such as the same required rate of return on assets?6. Choose the timing of the feedback.How often should manufacturing performance reports be sent to management?Diff: 2Terms: Balanced ScorecardObjective: 1AACSB: Reflective thinking14) The executive vice president of Wicker Pen Company wants to establish an accounting-based performance measurement system for the company's new plant. The company has an accounting information system sufficient to support a fairly sophisticated performance measurement system. The new plant is going to be considered an investment center since its products will be markedly different from others the company currently sells. The new plant will have no internal dealings with other plants within the company.Required:What are some of the key steps that should be undertaken in the establishment of an accounting-based performance measurement system?Answer: Key steps include:1. Choose performance measures that align with top management's financial goals for the plant. They would include those that relate to the plant as an investment center.2. Choose the time horizon of each performance measure in step 1.3. Choose a definition of the components in each performance measure in step 1. For example, how should investment be defined?4. Choose a measurement alternative for each performance measure in step 1. For example, should historical cost or current cost be used to measure investment?5. Choose a target level of performance.6. Choose the timing of feedback.Diff: 2Terms: Balanced ScorecardObjective: 1AACSB: Reflective thinking15) Companies are increasingly using nonfinancial measures to evaluate performance. Why? Since these numbers do not come from the company's financial records, why are they used?Answer: The correct answer will revolve around the objective of providing quality goods to the corporation's customers. Quality goods bring repeat business and satisfied customers are a business' best advertisement.The idea is that these nonfinancial measures concentrate on areas and questions that indicate the quality of a particular corporation's products. While some of these items do not come from a companies' financial records, such as defect rates, they are quantifiable and can be verified.Diff: 3Terms: Balanced ScorecardObjective: 1AACSB: Reflective thinkingObjective 23.21) Managers usually use the term return on investment to evaluate:A) the performance of a subdivisionB) a potential projectC) the performance of a subunitD) Both A and C are correct.Answer: DDiff: 2Terms: return on investment (ROI)Objective: 2AACSB: Reflective thinking2) The return on investment is usually considered the most popular approach to incorporating the investment base into a performance measure because:A) it blends all the ingredients of profitability into a single percentageB) once determined, there is no need to use it with other measures of performanceC) it is similar to the company's price earnings ratio because a corporation's return on investment appears every day in The Wall Street JournalD) Both A and C are correct.Answer: ADiff: 2Terms: return on investment (ROI)Objective: 2AACSB: Reflective thinking3) Return on investment can be increased by:A) increasing operating assetsB) decreasing operating assetsC) decreasing revenuesD) Both B and C are correct.Answer: BDiff: 2Terms: return on investment (ROI)Objective: 2AACSB: Reflective thinking4) The ________ method of profitability analysis recognizes the two basic ingredients in profit-making: increasing income per dollar of revenues and using assets to generate more revenues.A) Balanced ScorecardB) Residual-IncomeC) DupontD) Economic Value AddedAnswer: CDiff: 2Terms: return on investment (ROI)Objective: 2AACSB: Reflective thinking5) During the past twelve months, the Aaron Corporation had a net income of $25,000. What is the amount of the investment if the return on investment is 20%?A) $50,000B) $100,000C) $125,000D) $250,000Answer: CExplanation: C) 0.20 = $25,000/x; x = $125,000Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills6) During the past twelve months, the Zenith Corporation had a net income of $78,400 What is the return on investment if the amount of the investment is $560,000?A) 10%B) 12%C) 14%D) 16%Answer: CExplanation: C) $78,400/$560,000 = 14%Diff: 1Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills7) The Alpha Beta Corporation had the following information for 20X5:Revenue $ 450,000Operating expenses 335,000Total assets 575,000What is the return on investment?A) 10%B) 20%C) 25%D) 78.2%Answer: BExplanation: B) (450,000 - $335,000)/$575,000 = 20%Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills8) Wacker Company has two regional offices. The data for each are as follows:Maryland New JerseyRevenues $ 290,000 $ 298,000Operating assets 2,400,000 4,500,000Net operating income 1,008,000 1,200,000What is the Maryland Division's return on investment?A) 0.42B) 0.54C) 0.96D) 4.12Answer: AExplanation: A) $1,008,000/$2,400,000 = 0.42Diff: 1Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills9) Thacker Company has two regional offices. The data for each are as follows:Maryland New JerseyRevenues $ 290,000 $ 298,000Operating assets 2,400,000 4,500,000Net operating income 1,008,000 1,200,000What is the return on investment for the New Jersey Division?A) 0.21B) 0.27C) 0.48D) 2.06Answer: BExplanation: B) $1,200,000/$4,500,000 = 0.27Diff: 1Terms: return on investment (ROI)Objective: 2AACSB: Analytical skillsAnswer the following questions using the information below:The Cybertronics Corporation reported the following information for its Cyclotron Division: Revenues $2,000,000Operating costs 1,200,000Taxable income 400,000Operating assets 1,000,000Income is defined as operating income.10) What is the Cyclotron Division's investment turnover ratio?A) 2.00B) 3.33C) 2.50D) 0.80Answer: AExplanation: A) $2,000,000/$1,000,000 = 2Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills11) What is the Cyclotron Division's return on sales?A) 0.20B) 0.40C) 0.50D) 0.60Answer: BExplanation: B) $2,000,000 - $1,200,000 = $800,000; $800,000/$2,000,000 = 0.40Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills12) What is the Cyclotron Division's return on investment?A) 0.2B) 0.4C) 0.5D) 0.8Answer: DExplanation: D) $800,000 / $1,000,000 = 0.8Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skillsAnswer the following questions using the information below:The top management at Munchie Company, a manufacturer of computer games, is attempting to recover from a flood that destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged:Alpha Division Beta Division Gamma DivisionSales $5,000,000 (a) $2,300,000Net operating income $3,000,000 $1.300,000 $ 1,150,000Operating assets (b) (c) $1,533,333Return on investment 0.25 0.15 (d)Return on sales (e) 0.10 0.5Investment turnover (f) (g) 1.513) What were the sales for the Beta Division?A) $8,666,667B) $11,904,760C) $13,000,000D) $14,303,600Answer: CExplanation: C) 0.10 = $1,300,000/x; x = $13,000,000Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills14) What is the value of the operating assets belonging to the Alpha Division?A) $8,666,667B) $12,000,000C) $13,000,000D) $14,303,600Answer: BExplanation: B) $3,000,000/0.25 = $12,000,000Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills15) What is the value of the operating assets belonging to the Beta Division?A) $8,666,667B) $11,904,760C) $13,000,000D) $14,303,600Answer: AExplanation: A) .15 = $1,300,000/x; x = $8,666,667Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills16) What is the Gamma Division's return on investment?A) 0.25B) 0.42C) 0.60D) 0.75Answer: DExplanation: D) 0.5 × 1.5 = 0.75Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills17) What is the Alpha Division's return on sales?A) 0.25B) 0.42C) 0.60D) 0.75Answer: CExplanation: C) $3,000,000/$5,000,000 = 0.60Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skillsAnswer the following questions using the information below:The top management at Groundsource Company, a manufacturer of lawn and garden equipment, is attempting to recover from a fire that destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged:Tractor DivisionTiller Division Digger DivisionSales $10,000,000 (a) $2,400,000Net operating income $ 1,000,000 $1,440,000 $ 600,000Operating assets (b) (c) $ 2,000,000Return on investment 0.20 0.10 (d)Return on sales (e) 0.12 0.25Investment turnover (f) (g) 1.218) What were the sales for the Tiller Division?A) $9,600,000B) $12,000,000C) $15,000,000D) $15,500,000Answer: BExplanation: B) Return on Sales = Net Inc / Sales.12 = $1,440,000 / SS = $1,440,000 / .12 = $12,000,000Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills19) What is the value of the operating assets belonging to the Tractor Division?A) $ 3,500,000B) $4,000,000C) $4,500,000D) $5,000,000Answer: DExplanation: D) ROI = Net Income / AssetsAssets = net Income / ROIAssets = $1,000,000/0.20 = $5,000,000Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills20) What is the value of the operating assets belonging to the Tiller Division?A) $10,000,000B) $ 12,000,000C) $ 14,400,000D) $ 15,000,000Answer: CExplanation: C) ROI = Net Income / AssetsAssets = Net Income / ROIAssets = $1,440,000/0.10 = $14,400,000Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills21) What is the Digger Division's return on investment?A) .25B) .30C) .45D) .60Answer: BExplanation: B) ROI = Net Income / Net Assets = Return on Sales x Asset Turnover 0.25 × 1.2 = .30Can Verify by dividing Net Income / Assets= $600,000 / $2,000,000 = .30Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills22) What is the Tractor Division's return on sales?A) 0.10B) 0.12C) 0.15D) 0.20Answer: AExplanation: A) $1,000,000/$10,000,000 = 0.10Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills23) What is the Tractor Division's investment turnover?A) .50B) 1.0C) 2.0D) 2.5Answer: CExplanation: C) Investment Turnover = Sales / Assetsstep 1 is to calculate the AssetsROI = Net Income / AssetsAssets = net Income / ROIAssets = $1,000,000/0.20 = $5,000,000Then Investment Turnover = $10,000,000 / $5,000,000 = 2.0Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills24) What is the Tiller Division's investment turnover?A) .50B) .833C) 1.2D) 1.5Answer: BExplanation: B) Return on Investment = Return on Sales x Investment TurnoverInvestment Turnover = Return on Investment / Return on Sales= .10/.12 = .833Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills25) Costs recognized in particular situations that are NOT recognized by accrual accounting procedures are:A) opportunity costsB) imputed costsC) cash accounting costsD) None of these answers is correct.Answer: BDiff: 1Terms: imputed costObjective: 2AACSB: Reflective thinking26) A problem with using residual income is that a corporation with a:A) high investment turnover ratio always has a higher residual income than a corporation with a smaller investment turnover ratioB) high return on sales always has a higher residual income than a corporation with a smaller return on salesC) larger dollar amount of assets is likely to have a higher residual income than a corporation with a smaller dollar amount of assetsD) None of these answers is correct.Answer: CDiff: 2Terms: residual income residual income (RI)Objective: 2AACSB: Reflective thinking27) A company which favors the residual income approach wants managers to:A) concentrate on maximizing an absolute amount of dollarsB) concentrate on maximizing a percentage returnC) maximize the investment turnover ratioD) maximize return on salesAnswer: ADiff: 2Terms: residual income residual income (RI)Objective: 2AACSB: Reflective thinking28) Using residual income as a measure of performance rather than return on investment promotes goal congruence because residual income:A) places importance on the reduction of underperforming assetsB) calculates a percentage return rather than an absolute returnC) concentrates on maximizing an absolute amount of dollarsD) concentrates on maximizing the return on salesAnswer: CDiff: 2Terms: residual income residual income (RI)Objective: 2AACSB: Reflective thinking29) Which of the following is the correct formula for return on sales?A) Income / InvestmentB) Investment / IncomeC) Income / RevenueD) Revenue / InvestmentAnswer: CDiff: 1Terms: return on investmentObjective: 2AACSB: Reflective thinking30) Another name for return on investment is the:A) net present valueB) accounting rate of returnC) residual incomeD) internal rate of returnAnswer: BDiff: 1Terms: return on investmentObjective: 2AACSB: Reflective thinkingAnswer the following questions using the information below:The Bandage Medical Supply Company has two divisions that operate independently of one another. The financial data for the year 2012 reported the following results:North SouthSales $6,000,000 $5,000,000Operating income 1,500,000 1,100,000Taxable income 1,300,000 750,000Investment 12,000,000 10,000,000The company's desired rate of return is 10%. Income is defined as operating income.31) What are the respective return-on-investment ratios for the North and South Divisions?A) 0.110 and 0.125B) 0.108 and 0.075C) 0.125 and 0.110D) 0.125 and 0.150Answer: CExplanation: C) North = $1,500,000/$12,000,000 = 0.125South = $1,100,000/$10,000,000 = 0.110Diff: 2Terms: return on investment (ROI)Objective: 2AACSB: Analytical skills32) What are the respective residual incomes for the North and South Divisions?A) $60,000 and $100,000B) $300,000 and $60,000C) $300,000 and $100,000D) $100,000 and a negative $300,000Answer: CExplanation: C) North = $1,500,000 - (0.1 × $12,000,000) = $300,000South = $1,100,000 - (0.1 × $10,000,000) = $100,000Diff: 2Terms: residual income residual income (RI)Objective: 2AACSB: Analytical skills33) Which division has the best return on investment and which division has the best residual income figure, respectively?A) North, NorthB) South, SouthC) North, SouthD) South, NorthAnswer: AExplanation: A) North = $1,500,000/$12,000,000 = 0.125South = $1,100,000/$10,000,000 = 0.110North = $1,500,000 - (0.1 × $12,000,000) = $300,000South = $1,100,000 - (0.1 × $10,000,000) = $100,000Diff: 2Terms: return on investment (ROI), residual income residual income (RI)Objective: 2AACSB: Analytical skills34) After-tax operating income minus the after-tax weighted-average cost of capital multiplied by total assets minus current liabilities equals:A) return on investmentB) residual incomeC) economic value addedD) weighted-average cost of capitalAnswer: CDiff: 1Terms: economic value added (EVA®)Objective: 2AACSB: Reflective thinking35) The after-tax average cost of all the long-term funds used by a corporation equals:A) economic value addedB) return on investmentC) return on equityD) weighted-average cost of capitalAnswer: DDiff: 1Terms: economic value added (EVA®)Objective: 2AACSB: Reflective thinking36) A negative feature of defining investment by EXCLUDING the portion of total assets employed that are financed by short-term creditors is that:A) current liabilities are sometimes difficult to defineB) short-term debt is always more expensive to finance than long-term debtC) this method encourages managers to use an excessive amount of short-term debtD) this method encourages managers to use an excessive amount of long-term debtAnswer: CDiff: 2Terms: economic value added (EVA®), investmentObjective: 2AACSB: Reflective thinking37) Springfield Corporation, whose tax rate is 40%, has two sources of funds: long-term debt with a market value of $8,000,000 and an interest rate of 8%, and equity capital with a market value of$12,000,000 and a cost of equity of 12%. What is Springfield's weighted average cost of capital (WACC)?A) .0480B) .0800C) .0912D) .1000Answer: CExplanation: C) [($8,000,000 × (1 - .4) × (.08)) + ($12,000,000 × .12)] / ($8,000,000 + $12,000,000)= .0912Diff: 2Terms: economic value added (EVA®)Objective: 2AACSB: Analytical skills38) Springfield Corporation, whose tax rate is 40%, has two sources of funds: long-term debt with a market value of $8,000,000 and an interest rate of 8%, and equity capital with a market value of$12,000,000 and a cost of equity of 12%. Springfield has two operating divisions, the Blue division and the Gold division, with the following financial measures for the current year:What is Economic Value Added (EVA®) for the Blue Division?A) -$233,400B) $21,960C) $188,600D) $433,960Answer: BExplanation: B) WACC = [($8,000,000 × (1 - .4) × (.08)) + ($12,000,000 × .12)] / ($8,000,000 + $12,000,000) = .0912EVA = ($1,055,000 × (1 - .4)) - (($9,500,000 - $2,800,000) × .0912) = $21,960Diff: 3Terms: economic value added (EVA®)Objective: 2AACSB: Analytical skills39) Springfield Corporation, whose tax rate is 40%, has two sources of funds: long-term debt with a market value of $8,000,000 and an interest rate of 8%, and equity capital with a market value of $12,000,000 and a cost of equity of 12%. Springfield's after-tax cost of debt is:A) .0320B) .0480C) .0800D) .0912Answer: BExplanation: B) .08 × (1 - .4) = .048Diff: 2Terms: economic value added (EVA®)Objective: 2AACSB: Analytical skills40) Springfield Corporation, whose tax rate is 40%, has two sources of funds: long-term debt with a market value of $8,000,000 and an interest rate of 8%, and equity capital with a market value of $12,000,000 and a cost of equity of 12%. Springfield has two operating divisions, the Blue division and the Gold division, with the following financial measures for the current year:Total Assets Current Liabilities Operating IncomeBlue Div. $9,500,000 $2,800,000 $1,055,000Gold Div.$11,000,000 $2,200,000 $1,200,000Calculate EVA® for the Gold Division.A) ($283,200)B) ($82,560)C) $196,800D) $397,440Answer: BExplanation: B) WACC = [($8,000,000 × (1 - .4) × (.08)) + ($12,000,000 × .12)] / ($8,000,000 + $12,000,000) = .0912EVA = ($1,200,000 × (1 - .4)) - (($11,000,000 - $2,200,000) × .0912) = ($82,560)Diff: 3Terms: economic value added (EVA®)Objective: 2AACSB: Analytical skillsAnswer the following questions using the information below:Waldorf Company has two sources of funds: long-term debt with a market and book value of $5 million issued at an interest rate of 12%, and equity capital that has a market value of $4 million (book value of $2 million). Waldorf Company has profit centers in the following locations with the following operating incomes, total assets, and current liabilities. The cost of equity capital is 12%, while the tax rate is 25%.41) What is the EVA® for St. Louis?A) $127,870B) $163,730C) $196,270D) $360,000Answer: BExplanation: B) WACC = [(.12 × (1 - .25) × $5,000,000) + (0.12 × $4,000,000)]/$9,000,000 = 0.1033 St. Louis (EVA®) = ($480,000 × (1 - .25)) - [0.1033 × ($2,000,000 - $100,000)] = $360,000 - $196,270= $163,730Diff: 3Terms: economic value added (EVA®)Objective: 2AACSB: Analytical skills42) What is the EVA® for Cedar Rapids?A) $67,790B) $110,000C) $117,000D) $152,500Answer: AExplanation: A) Cedar Rapids (EVA®) = ($600,000 × (1 - .25)) - [0.1033 × ($4,000,000 - $300,000)] = $450,000 - $382,210= $67,790Diff: 3Terms: economic value added (EVA®)Objective: 2AACSB: Analytical skills。

Ch07_Pindyck生产成本

million Which building should the firm buy?
©2005 Pearson Education, Inc.
Chapter 7
9
Prospective Sunk Cost
Example (cont.) The first building should be purchased The $500,000 is a sunk cost and should
Chapter 7
13
边际成本
Marginal Cost (MC):
The cost of expanding output by one unit Fixed costs have no impact on marginal cost,
so it can be written as:
MC ΔVC ΔTC Δq Δq
100 50
Fixed cost does not vary with output
FC
0 1 2 3 4 5 6 7 8 9 10 11 12 13
©2005 Pearson Education, Inc.
Chapter 7
Output
21
Cost Curves
Cost ($/unit)
120
100
©2005 Pearson Education, Inc.
Chapter 7
14
平均成本
Average Total Cost (ATC)
Cost per unit of output Also equals average fixed cost (AFC) plus
average variable cost (AVC)

公司理财精要版原书第12版英文版最新精品课件Ross_12e_PPT_Ch24

CHAPTER 24
OPTION VALUATION
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
• Similar to paying an insurance premium to protect against potential loss
• Trade-off between the amount of protection and the price that you pay for the option
EXAMPLE: FINDING THE CALL PRICE
• You have looked in the financial press and found the following information:
▪ Current stock price = $50 ▪ Put price = $1.15 ▪ Exercise price = $45 ▪ Risk-free rate = 5% ▪ Expiration in 1 year
• Call + PV(E)
▪ PV(E) will be worth E at expiration of the option ▪ If S < E, let call expire and have investment, E ▪ If S ≥ E, exercise call using the investment and have S
▪ PV = 100e-0.08(3/12) = 98.02

Chapter24CompletingtheAudit(审计学-英文版)-文档资料

The American Bar Association amended its attorney-client confidentiality rules to permit attorneys to breach confidentiality if a client is committing a crime or fraud.
Adjust financial statements or note disclosure
©2006 Prentice Hall Business Publishing, Auditing 11/e, Arens/Beasley/Elder
24 - 6
Auditor’s Concerns
▪ Pending litigation for patent infringement, product liability, or other actions
date
Audit Date client report issues financial date statements
12-31-05
3-11-06
3-26-06
Period to which review for subsequent events applies
©2006 Prentice Hall Business Publishing, Auditing 11/e, Arens/Beasley/Elder
24 - 4
Contingent Liabilities
A contingent liability is a potential future obligation to an outside party for an unknown amount resulting from activities that have already taken place.

托福TPO24阅读Passage1原文文本+题目+答案解析

托福TPO24阅读Passage1原文文本+题目+答案解析为了帮助大家高效备考托福，为大家带来托福TPO24阅读Passage1原文文本+题目+答案解析，希望对大家备考有所帮助。

▉托福TPO24阅读Passage1原文文本：Lake WaterWhere does the water in a lake come from,and how does water leave it?Water enters a lake from inflowing rivers,from underwater seeps and springs,from overland flow off the surrounding land,and from rain falling directly on the lake surface.Water leaves a lake via outflowing rivers,by soaking into the bed of the lake,and by evaporation.So much is obvious.The questions become more complicated when actual volumes of water are considered:how much water enters and leaves by each route?Discovering the inputs and outputs of rivers is a matter of measuring the discharges of every inflowing and outflowing stream and river.Then exchanges with the atmosphere are calculated by finding the difference between the gains from rain,as measured(rather roughly)by rain gauges,and the losses by evaporation,measured with models that correct for the other sources of water loss.For the majority of lakes,certainly those surrounded by forests,input from overland flow is too small to have a noticeable effect.Changes in lake level not explained by river flows plus exchanges with the atmosphere must be due to the net difference between what seeps into the lake from the groundwater and what leaks into the groundwater.Note the word"net":measuring the actual amounts of groundwater seepage into the lake and out of the lake is a much more complicated matter than merely inferring their difference.Once all this information has been gathered,it becomespossible to judge whether a lake’s flow is mainly due to its surface inputs and outputs or to its underground inputs and outputs.If the former are greater,the lake is a surface-water-dominated lake;if the latter,it is a seepage-dominated lake.Occasionally,common sense tells you which of these two possibilities applies.For example,a pond in hilly country that maintains a steady water level all through a dry summer in spite of having no streams flowing into it must obviously be seepage dominated.Conversely,a pond with a stream flowing in one end and out the other,which dries up when the stream dries up,is clearly surface water dominated.By whatever means,a lake is constantly gaining water and losing water:its water does not just sit there,or,anyway,not for long.This raises the matter of a lake’s residence time.The residence time is the average length of time that any particular molecule of water remains in the lake,and it is calculated by dividing the volume of water in the lake by the rate at which water leaves the lake.The residence time is an average;the time spent in the lake by a given molecule(if we could follow its fate)would depend on the route it took:it might flow through as part of thefastest,most direct current,or it might circle in a backwater for an indefinitely long time.Residence times vary enormously.They range from a few days for small lakes up to several hundred years for large ones;Lake Tahoe,in California,has a residence time of 700 years.The residence times for the Great Lakes of North America,namely,Lakes Superior,Michigan,Huron,Erie,and Ontario,are,respectively,190,100,22,2.5,and 6 /doc/7b4002097.html,ke Erie’s is th elowest:although its area is larger than Lake Ontario’s,its volume is less than one-third as great because it is so shallow-less than20 meters on average.A given lake’s residence time is by no means a fixed quantity.It depends on the rate at which water enters the lake,and that depends on the rainfall and the evaporation rate.Climatic change(the result of global warming?)is dramatically affecting the residence times of some lakes in northwestern Ontario,Canada.In the period 1970 to 1986,rainfall in the area decreased from 1,000 millimeters to 650 millimeters per annum,while above-average temperatures speeded up the evapotranspiration rate(the rate at which water is lost to the atmosphere through evaporation and the processes of plant life).The result has been that the residence time of one of the lakes increased from 5 to 18 years during the study period.The slowing down of water renewal leads to a chain of further consequences;it causes dissolved chemicals to become increasingly concentrated,and this,in turn,has a marked effect on all living things in the lake.paragraph1:Where does the water in a lake come from,and how does water leave it?Water enters a lake from inflowing rivers,from underwater seeps and springs,from overland flow off the surrounding land,and from rain falling directly on the lake surface.Water leaves a lake via outflowing rivers,by soaking into the bed of the lake,and by evaporation.So much is obvious.▉托福TPO24阅读Passage1题目：1.The phrase So much in the passage refers to○the negative eff ects of overland flow,rain,and evaporation on river water levels○water that a lake loses to outflowing rivers,to the lakebed,and to evaporation○the importance of rivers to the maintenance of lake water levels○the information given about ways that water can enter or exit a lake。

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Principles of Macroeconomics
Tutorial
Chapter 24 Measuring the Cost of Living

1. A 10% increase in the price of chicken has a greater effect on the consumer price index than
a 10% increase in the price of caviar because chicken is a bigger part of the average
consumer's market basket.

2. If the price of a Navy submarine rises, there is no effect on the consumer price index,
because Navy submarines are not consumer goods. But the GDP price index is affected,
because Navy submarines are included in GDP as a part of government purchases.

3. Because the overall price level doubled, but the price of the candy bar rose sixfold, the real
price (the price adjusted for inflation) of the candy bar tripled.

4. a. Find the price of each good in each year:
Year CauliflowerBroccoli Carrots
2003 $2 $1.5 $0.1
2004 $3 $1.5 $0.2

b. If 2003 is the base year, the market basket used to compute the CPI is 50 pounds of
ham, 35 pounds of chicken, and 100 pounds of roast beef. We must now calculate the
cost of the market basket in each year:
2006: (100 x $2) + (50 x $1.5) + (500 x $0.1) = $325
2007: (100 x $3) + (50 x $1.5) + (500 x $0.2) = $475

Then, using 2003 as the base year, we can compute the CPI in each year:
2006: $325/$325 x 100 = 100
2007: $475/$325 x 100 = 146

c. We can use the CPI to compute the inflation rate for 2004:
(146 − 100)/100 x 100% = 46%

5. a. introduction of new goods;
b. unmeasured quality change;
c. substitution bias;
d. unmeasured quality change;
e. substitution bias

6. a. When inflation is higher than was expected, the real interest rate is lower than expected.
For example, suppose the market equilibrium has an expected real interest rate of 3%
and people expect inflation to be 4%, so the nominal interest rate is 7%. If inflation
turns out to be 5%, the real interest rate is 7% minus 5% equals 2%, which is less than
the 3% that was expected.

b. Because the real interest rate is lower than was expected, the lender loses and the
borrower gains. The borrower is repaying the loan with dollars that are worth less than
was expected.

c. Homeowners in the 1970s who had fixed-rate mortgages from the 1960s benefited from
the unexpected inflation, while the banks that made the mortgage loans were harmed.