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ACC 576 Week 7 Quiz (All Possible Questions)
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ACC 576 Week 7 Quiz (All Possible Questions)

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ACC 576 Week 7 Study

1.      A management accountant performed a linear regression of maintenance cost vs. production using a computer spreadsheet. The regression output shows an "intercept" value of $322,897. How should the accountant interpret this information?

2.      The equation for the graphic plot of a linear economic variable is D = b + m(a). Which of the following represents the value of the "intercept"?

3.      Which of the following statements regarding the use of graphs to depict economic relationships is not correct?

4.      Graphs are a means of depicting the relationship between two variables. These variables are usually identified as

5.      The equation for the graphic plot of a linear economic variable is D = b + m(a), where m > 0. Which of the following is the slope of the economic "curve" represented by this equation?

6.      Measures of the economic activity of an entire nation would be included in the study of

7.      The free-market economy flow model depicts four major interrelated flows:I . Individuals provide economic resources to business firms.II. Firms provide payment to individuals for economic resources.III. Firms provide goods and services to individuals.IV. Individuals provide payment to firms for goods and services.

8.      If the cost of imported oil declined suddenly and significantly, which one of the above flows would be most likely to be the first impacted?

9.      The free-market economy flow model depicts four major interrelated flows:I . Individuals provide economic resources to business firms.II. Firms provide payment to individuals for economic resources.III. Firms provide goods and services to individuals.IV. Individuals provide payment to firms for goods and services.

10.  If financial institutions and businesses suddenly and severely restrict the availability of consumer credit, which one of the above flows would be most likely to be the first to be impacted adversely?

11.  Which of the following are considered economic resources?

12.  In a free-market economy, which of the following should be the least significant factor in determining resource allocation and use?

13.  Which of the following is not a characteristic of a free-market economy?

14.  The demand for a commodity would increase when the price of a

15.  When a demand schedule is plotted on a graph, the resulting demand curve will be

16.  In the statement "quantity demanded is a function of price," are the variables quantity and price dependent or independent variables?

17.  The demand curve for a product reflects which of the following?

18.  If there is an increase in the income of market participants, which of the following is most likely to happen to the demand for normal goods?

19.  Which one of the following would not cause an increase in demand for a commodity?

20.  Concurrent with a significant downturn in the economy, the sale of Scope's high-end electronics decreased dramatically. Which of the following is the most likely direct cause of the decline in demand for Scope's products?

21.  Which one of the following factors would not cause an increase in the supply curve of a commodity?

22.  A supply schedule (or supply curve) shows the relationship between the quantity of a commodity that will be supplied during a period of time and

23.  If a change in market variables causes a supply curve to shift inward, which one of the following will occur?

24.  When the cost of input factors to the production process increases, which one of the following will occur?

25.  In the statement "quantity supplied is a function of price," are the variables quantity and price dependent or independent variables?

26.  An increase in taxes on cigarette production would cause which one of the following to occur?

27.  What is the effect on the quantity of a commodity supplied relative to demand as a result of a government-mandated price ceiling or price floor?

28.  A city ordinance that establishes a price ceiling on rent may cause

29.  If both demand and supply have traditional curves, a higher equilibrium price may be caused by which one of the following?

30.  If the price for a good is fixed by government fiat below market equilibrium price, which one of the following will occur?

31.  A price ceiling that is below the market equilibrium price would be expected to result in which one of the following sets of effects on demand and supply?

32.  Which of the following characteristics would indicate that an item sold would have a high price elasticity of demand?

33.  An increase in the price of Commodity Y from $50 to $60 resulted in an increase in the quantity supplied, from 80 units to 88 units. Which one of the following is the price elasticity of supply?

34.  A company has a policy of frequently cutting prices to increase sales. Product demand is significantly elastic. What impact would this have on the company's situation?

35.  If demand for a product is elastic, what would be the effect of a price increase and a price decrease on total revenue (TR) generated?

36.  In which of the following situations would there be inelastic demand?

37.  The elasticity of demand is measured by

38.  A 4% increase in the market price of Commodity X resulted in an 8% increase in the quantity of Commodity X supplied. Which one of the following statements is correct?

39.  As an individual acquires (or consumes) more units of a commodity over a given time period, what is the effect on the individual's total utility and marginal utility?

40.  The following graph shows four curves: A-A, B-B, C-C, and D-D. Which one of these curves could depict a total utility curve?

41.  Allen buys only beer and pizza. When the price of beer is $2.00 per bottle and the price of pizza is $10.00, Allen maximizes his total utility (satisfaction) by buying 5 beers and 4 pizzas. If the marginal utility of the 5th beer is 100 utils, which one of the following would be the marginal utility of the 4th pizza?

42.  The following graph shows four curves: A-A, B-B, C-C, and D-D. Which of these curves depict variables that are not interdependent?

43.  Allen has the following schedule of marginal utility for slices of pizza and bottles of beer: If Allen maximizes his total utility by consuming 3 slices of pizza and 3 bottles of beer, which one of the following is the ratio of the price of a slice of pizza to the price of a bottle of beer?

44.  Which one of the following cost curves does not have a general "U-shape"?

45.  In the long run, if all input factors to a production process are increased by 100%, but total output increases by only 75%, this indicates

46.  Which one of the following statements regarding periods of analysis is correct?

47.  According to the law of diminishing returns, which one of the following is correct?

48.  In a macroeconomic free-market flow model, which of the following would be considered leakages?

49.  Which of the following forms of economic activity is considered in macroeconomics, but not in microeconomics?

50.  In a macroeconomic free-market flow model, which one of the following would not be considered an "injection?"

51.  Which of the following issues is least likely to be relevant to the study of macroeconomics?

52.  The foreign sector plays a role in a macroeconomic free-market flow model because of

53.  Which of the following sectors is most likely to be relevant in both microeconomic and macroeconomic models of free-market flows?

54.  Potential GDP is a measure of an economy's ability to produce goods and services. Which of the following is assumed in estimating potential GDP?

55.  Which of the following graphs shows the maximum combination of goods and services that can be produced at a given time, if all available resources are used efficiently?

56.  A positive gross domestic product (GDP) gap exists when

57.  Gross domestic product (GDP) is a measure of

58.  Adjustment from gross national product (GNP) to net national product (NNP) would require which one of the following?

59.  A good produced in 2008 that was in the finished goods inventory on December 31, 2008, and was sold in January 2009 would be included in whole or in part in the GDP of which year(s)?

60.  The following information is available for economic activity for year 1: What amount is the gross domestic product for year 1?

61.  Which of the following indicates that the economy is in a recessionary phase?

62.  If the U.S. economy is experiencing a 9% total unemployment rate and the natural rate of unemployment is 5.5%, which of the following is the cyclical rate of unemployment?

63.  Jason, 14 years old, has been working delivering newspapers for the past two years. Because he just entered high school, he has had to give up his newspaper delivery job. Although he has been seeking a new job, he has not been able to find one. Jason would be considered

64.  There can be official full employment when there is which of the following kinds of unemployment? I. Structural unemployment.II. Frictional unemployment.III. Seasonal unemployment.

65.  As a result of the recession in 2009 and the related decline in tourism, several thousand hospitality industry workers in Florida became unemployed. These workers were

66.  Which of the following changes in unemployment is most likely to be associated with a period of economic contraction?

67.  Which of the following types of unemployment typically results from technological advances?

68.  Which of the following is not included in what is considered the natural rate of unemployment?

69.  Which of the following is most likely to decrease aggregate demand?

70.  In macroeconomics, which one of the following would not be considered investment spending?

71.  During 2008, Roy's disposable income was $100,000 and he spent $90,000 on consumable goods. During 2009, Roy's disposable income increased to $200,000 and he spent $150,000 on consumable goods. For 2009, when compared to 2008, what is Roy's marginal propensity to consume?

72.  An increase in spending on imported goods would most likely cause which one of the following?

73.  Which of the following is most likely to result in an increase in aggregate demand in the U.S. economy?

74.  Which of the following is most likely to increase aggregate demand?

75.  During 2008, Roy's disposable income was $100,000 and he spent $90,000 on consumable goods. During 2009, Roy's disposable income increased to $200,000 and he spent $150,000 on consumable goods. During 2009, what is Roy's average propensity to consume?

76.  The full-employment gross domestic product is $1.3 trillion, and the actual gross domestic product is $1.2 trillion. The marginal propensity to consume is 0.8. When inflation is ignored, what increase in government expenditures is necessary to produce full employment?

77.  Which of the following theoretical aggregate supply curves has a "kink" at the level of output at which there is full employment?

78.  The war in Iraq substantially reduced the working population, as well as other economic resources, of that country. Which one of the following most likely occurred in the Iraqi economy as a result of the reduced working population?

79.  Which of the following effects is most likely to accompany an unexpected reduction in aggregate supply, assuming a conventional supply curve?

80.  An increase in the minimum wage rate would likely result in which one of the following?

81.  Assuming a conventional supply curve, which one of the following factors will not cause a shift in the aggregate supply curve for a good?

82.  An increase in the value of the Chinese currency (the RMB) relative to the U.S. dollar would most likely cause which of the following?

83.  Assume increased capital investment results in higher levels of output of goods, but demand remains unchanged. What will be the likely effect on aggregate equilibrium quantity and price if a conventional supply curve is assumed?

84.  A rise in a country's exports would most likely cause which one of the following shifts?

85.  Assume increased capital investment results in higher levels of output of goods, but demand remains unchanged. What will be the likely effect on aggregate equilibrium quantity and price if a classical supply curve is assumed?

86.  Assume increased capital investment results in higher levels of output of goods, but demand remains unchanged. What will be the likely effect on aggregate equilibrium quantity and price if a Keynesian supply curve is assumed and the level of aggregate demand is at greater than full employment?

87.  The aggregate demand and aggregate supply curves intersect at a price and quantity that are

88.  Which one of the following statements concerning the business cycle is correct?

89.  The business cycle in the U.S. is measured in terms of changes in

90.  Which of the following measures is most likely to indicate a forthcoming recessionary period?

91.  Which of the following segments of the economy will be least affected by the business cycle?

92.  Which of the following statements concerning the business cycle, if any, is correct? I. Business cycles recur with a consistent pattern of length and magnitude. II. Business cycles impact individual industries at different times and with different degrees of severity.

93.  Variations between business cycles are most likely attributable to which of the following factors?

94.  Which of the following changes is most likely to be a lagging indicator of a change in the business cycle?

95.  Which of the following typically is not a reason for international economic activity by a U.S. entity?

96.  Which of the following typically is not a reason for international economic activity by a U.S. entity?

97.  Which one of the following concepts underlies the benefits of international economic activity (i.e., international trade)?

98.  The concept of comparative advantage in international business activity is based on which one of the following?

99.  Which one of the following would not be an argument made by U.S. unions in favor of trade protectionism?

100.                      In the long run, the imposition of an import quota on a commodity is likely to provide the greatest direct benefit to

101.                      Which of the following is not an account used by the U.S. to account for transactions and balances with other nations (i.e., those not in the U.S. balance of payments statement)?

102.                      What is the effect when a foreign competitor's currency becomes weaker compared to the U.S. dollar?

103.                      A statement expressed in the form of "1 euro = $1.20" expresses a/an

104.                      A company manufactures goods in Esland for sale to consumers in Woostland. Currently, the economy of Esland is booming and imports are rising rapidly. Woostland is experiencing an economic recession and its imports are declining. How will the Esland currency, $E, react with respect to the Woostland currency, $W?

105.                      A country's currency conversion value has recently changed from 1.5 to the U.S. dollar to 1.7 to the U.S. dollar. Which one of the following statements about the country is correct?

106.                      Freely fluctuating exchange rates perform which of the following functions?

107.                      Platinum Co. has a receivable due in 30 days for 30,000 euros. The treasurer is concerned that the value of the euro relative to the dollar will drop before the payment is received. What should Platinum do to reduce this risk?

108.                      Assume a U.S. company purchases shares of a French company for 1,000,000 euros on March 1, 2003, when the exchange rate was 1 E = $1.10. The investment is classified as available-for-sale by the U.S. company. After holding the shares for eight months, it sold the entire investment in the foreign market for 1,200,000 euros when the exchange rate was 1 E = $1.23.What dollar amount of total investment gain or loss would the U.S. company recognize?

109.                      Assume a U.S. company purchases shares of a French company for 1,000,000 euros on March 1, 2003, when the exchange rate was 1 E = $1.10. The investment is classified as available-for-sale by the U.S. company. After holding the shares for eight months, it sold the entire investment in the foreign market for 1,200,000 euros when the exchange rate was 1 E = $1.23.Which of the following type(s) of gain or loss would be recognized as a result of this investment in and subsequent sale of shares in the French company?

110.                      A put is an option that gives its owner the right to do which of the following?

111.                      A domestic entity may be exposed to foreign currency exchange rate risk if it engages in which, if any, of the following kinds of transactions that are denominated in a foreign currency?

112.                      Which of the following types of exchange risk derives from changes in currency exchange rates that alter the value of future transactions?

113.                      CompCo., a U.S. computer maker, imported a supply of computer chips from ChipCo., a Japanese supplier, and agreed to pay ChipCo. in yen, with terms of net 90. CompCo. is concerned that the dollar will weaken against the yen during the next three months and decides to hedge its liability. Which one of the following contract transactions would CompCo. initiate to hedge its exchange rate risk?

114.                      Which of the following is not a common basis for establishing a transfer price between affiliated entities?

115.                      Which of the following examples involves transfer pricing?

116.                      Globalco, a U.S. parent, has subsidiaries in Germany (Gerco) and in England (Engco). Gerco produces products that are sent to Engco for final assembly and packaging. Engo then sends the goods to Globalco for retail sales in the U.S. The effective income tax rates faced by each of the companies is: If the objective of transfer prices is to minimize income taxes, which of the following policies, within legally acceptable ranges, should Globalco adopt with respect to the transfer prices?

117.                      Which of the following statements regarding international transfer pricing is/are correct? I. Firms with operations in multiple nations can manipulate earnings through transfer pricing.II. The transfer price preferred by a foreign subsidiary manager may be different than the transfer price that maximizes consolidated profits.

118.                      Which of the following best describes "transfer pricing?"

119.                      Which of the following is not a kind of economic crisis that could be addressed by the International Monetary Fund?

120.                      Foreign direct investment occurs when a domestic entity invests in

121.                      If a country with a developed economy faces a debt crisis that makes it unable to satisfy its foreign debt obligations, which of the following international organizations is most likely to be called upon to help resolve the debt crisis?

122.                      Which one of the following would not be a purpose of the General Agreement on Tariffs and Trade (GATT)?

123.                      Which one of the following international organizations has the promotion of economic development through loans to developing countries as a primary purpose?

124.                      Which of the following enters into the determination of gross domestic product of a country?

125.                      Which of the following countries is the world's largest exporter of goods/services?

126.                      The long-term trend in the dollar value of U.S. exports and imports reflects

127.                      Which of the following statements regarding international trade is/are correct? I. International trade has been facilitated by regional trade agreements.II. International trade benefits both exporters and importers.

128.                      Over the past 50 years, how has the share of total U.S. purchases and output represented by imports and exports, respectively, changed?

129.                      Which of the following goods, if any, does the U.S. export more of than it imports (i.e., has net exports)? I. Manufactured goods. II. Industrial materials. III. Agricultural goods.

130.                      Which of the following statements regarding international trade over the last 50 years is/are correct? I. International trade accounts for an increasing share of worldwide economic activity.II. International trade accounts for an increasing share of U.S. economic activity.

131.                      International trade is measured by a country's

132.                      Which of the following is least likely to be a risk encountered when goods are outsourced to a foreign supplier and payment is denominated in the foreign supplier's currency?

133.                      Outsourcing may involve the acquisition of

134.                      Which of the following, if either, would serve to mitigate risks associated with outsourcing? I. Negotiate for payment to the foreign supplier be made in the foreign currency.II. Include an arbitration clause in the contract with the foreign supplier.

135.                      Outco, Inc., a U.S. firm, has a contract to acquire spare parts from a foreign supplier. The contract provides that the parts are to be manufactured to Outco's specifications and Outco is to pay in U.S. dollars. Which of the following risks will Outco encounter as a direct result of the contract?

136.                      Outsourcing of goods may involve acquisition of

137.                      Which of the following, if either, may be a reason a firm elects to outsource production of a subassembly used in its final product? I. To Improve quality of subassembly.II. To reduce the time needed to have the subassembly available.

138.                      Which of the following statements regarding the Eurodollar market, if either, is/are correct? I. Eurodollars can be either EEU Euros or U.S. dollars.II. The Eurodollar market provides long-term loans.

139.                      The currency or currencies of the Eurodollar market (Euromarket) include(s):

140.                      Bigo, Inc., a U.S. entity, decided to build a production facility in Mexico. To finance construction, it borrows one million pesos from Banco Uno, a Mexican bank. Which of the parties is exposed to currency exchange risk?

141.                      Capital markets facilitate the trading of

142.                      In which of the following circumstances, as the dollar changes against the foreign currency, would an investment in a foreign currency result in fewer dollars and a borrowing in a foreign currency cost more dollars?

143.                      Which of the following statements regarding globalization of capital markets, if either, is/are correct? I. Globalization permits reduced investment portfolio risk.II. Globalization permits a lower cost of capital.

144.                      Parco, Inc., a U.S. entity, has a 100% owned subsidiary, Subco, Inc., located in the country of Eastlaco. In which one of the following arrangements would there be no foreign currency exchange risk associated with borrowing by either Parco or its subsidiary, Subco, prior to consolidation?

145.                      Which one of the following sets identifies the two countries that are most likely the world's largest export countries?

146.                      In which of the following geographical areas has the greatest decline in share of worldwide output occurred over the past 40 years?

147.                      Which one of the following is most likely the U.S. share of worldwide exports?

148.                      Which of the following most closely represents the U.S. share of worldwide GDP (output)?

149.                      Which one of the following countries is not one of the world's largest exporters of goods and services?

150.                      In which of the following geographical areas has the greatest increase in share of worldwide output occurred over the past 30 years?

151.                      Which of the following is the most elementary form of international business?

152.                      Which one of the following is least likely an advantage associated with the acquisition of a pre-existing foreign entity?

153.                      Which of the following statements regarding foreign licensing and foreign franchising, if any, is/are correct? I. Licensors typically remain more involved with a licensee than a franchisor remains involved with a franchisee.II. Franchising typically provides greater quality control than does simple licensing.

154.                      Which one of the following is least likely an advantage associated with a wholly owned foreign subsidiary?

155.                      Government-imposed trade barriers may restrict

156.                      Which of the following statements regarding importing and exporting, if any, is/are correct? I. Goods with a low value-to-weight ratio are less likely to be suitable for importing than goods with a high value-to-weight ratio.II. In the exporting of goods, one may encounter import restrictions imposed by the country of destination.

157.                      Which one of the following forms of international business is most likely to give an entity the greatest control over an international business activity?

158.                      The measurement of post-performance characteristics is most likely to be associated with which one of the following activities of the strategic planning process?

159.                      Which of the following activities is most likely to be the first step in the strategic planning process?

160.                      Which of the following is not a generic strategy identified by Michael Porter?

161.                      Which of the following identifies a framework for gauging the attractiveness of the competitive environment of an industry?

162.                      Which of the following factors is explicitly included in PESTEL analysis but is not explicitly in PEST analysis?

163.                      PEST is an acronym for

164.                      In the context of PEST analysis, the analysis of labor law would be most likely to fall under which of the PEST categories?

165.                      Macro-environmental analysis is concerned with analysis of

166.                      Which of the following describes a form of analysis that is useful in evaluating the characteristics of a macro-environment?

167.                      PEST analysis can be used when considering

168.                      Which one of the following sets of characteristics should have the highest intensity of rivalry within an industry?

169.                      In which one of the following circumstances are customers most likely to have the greatest ability to affect product prices?

170.                      Vico, Inc., is considering a horizontal expansion of its business into a new industry. Vico is concerned that other businesses may be considering moving into the same industry in the near future. Which one of the following forms of analysis would Vico most likely use to assess whether the industry is likely to be highly competitive in the near future?

171.                      Which one of the following features would not create a higher level of competitive threat posed by substitute goods or services in an industry?

172.                      In which of the following independent circumstances would entry of new competitors be most likely?

173.                      Which of the following is not a five forces factor used in determining the operating attractiveness of an industry?

174.                      Which one of the following would not be an entity's strength in a competitive environment?

175.                      A regulatory agency has been considering the imposition of stricter regulations on an industry. Under SWOT analysis, the possibility of this new regulation would be considered

176.                      Is SWOT analysis concerned with external environment, internal characteristics, or both?

177.                      Which one of the following would be least likely to be a possible threat to an entity?

178.                      Which of the following types of analysis is directly concerned with the relationship between an entity and its environment?

179.                      Which of the following SWOT matrix relationship categories (intersections) poses the greatest risk to an entity?

180.                      Targeting a niche market always involves which of the following strategies, if either?

181.                      Which of the following is a characteristic of a cost leadership entity?

182.                      Under which of the following strategies, if either, would the strength and dedication of an entity's marketing function be critical?

183.                      Entities that adopt a differentiation strategy will provide goods or services that

184.                      Which one of the following is not a generic strategy identified by Porter?

185.                      When an entity adopts a cost leadership strategy, which one of the following might it use to help carry out this strategy?

186.                      Which of the following forms of analysis, if either, is concerned only with analysis of the external environment of an entity?

187.                      Which one of the following is least likely to be useful in deciding in which country an entity should operate?

188.                      Goals established in the strategic planning process should be

189.                      PEST analysis and SWOT analysis are assessment techniques used in the strategic planning process. Are these forms of analysis primarily concerned with "where" an entity should be located or with "how" an entity should operate?

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