1413 Words Oct 29th, 2012 6 Pages
Question 1
The primary objective of a for-profit firm is to ___________.

5 out of 5 points

maximize shareholder value maximize shareholder value

Question 2

5 out of 5 points

The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers?

innovation theory of profit innovation theory of profit

Question 3

5 out of 5 points

The Saturn Corporation (once a division of GM) was permanently closed in 2009. What went wrong with Saturn?

Saturn sold cars below the prices of Honda or
dollar relative to a trading partner can result from

higher growth rates in the trading partner's economy higher growth rates in the trading partner's economy

Question 24

5 out of 5 points

If the domestic prices for traded goods rises 5% in Japan and rises 7% the US over the same period, what would happened to the Yen/US dollar exchange rate? Hint: S1/S0 = (1+πh) / (1+ πf) where S0 is the direct quote of the yen at time 0, the current period.

The direct quote of the yen (\$/¥) falls, and the value of the dollar rises. The direct quote of the yen (\$/¥) falls, and the value of the dollar rises.

Question 25

5 out of 5 points

Given a Cobb-Douglas production function estimate of Q = 1.19L.72K.18 for a given industry, this industry would have:

decreasing returns to scale decreasing returns to

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