Chapter 02 - Economists’ View Of Behavior CHAPTER 2 REVIEW QUESTIONS 2–1. Which costs are pertinent to economic decision making? Which costs are not relevant? The marginal (incremental) costs and benefits are pertinent to economic decision making. Sunk costs and benefits are not relevant. In economics‚ “bygones are forever bygones.” 2-3. The Solace Company has an inventory of steel that it originally purchased for $20‚000. It currently has an offer to sell the steel for $30‚000. Should
Premium Consumer theory Utility
Introduction “Manias‚ Panics‚ and Crashes” was first published in 1978 and the current edition that I read is the 5th edition. It is a very good book with the recommendation from Professor Paul A. Samuelson‚ Nobel Laureate‚ Institute Professor Emeritus‚ Massachusetts Institute of Technology‚ “Sometime in the next five years you may kick yourself for not reading and re-reading Kindleberger’s Manias‚ Panics‚ and Crashes.” The book is written about the financial crisis happened since 1636
Premium Subprime mortgage crisis Economics Crisis
Chapter 2: The Financial System Financial system Matching those who have savings with those who want to borrow With or without the use of financial intermediaries The securities‚ intermediaries‚ and markets that exist to match savers and borrowers Essential part of a well- functioning economy The Financial System Financial Securities Financial security A contract in which a borrower Who seeks to obtain money from someone Promises to compensate the
Premium Bond Debt Stock market
Chapter 1 Philosophy means philein: love and sophia: wisdom‚ the love or pursuit of wisdom Philosophy beings with wonder‚ a search for the answer to a greater question Philosophy is a dynamic process‚ the dynamic nature of philosophical thinking‚ a process that is dialectical in the sense that ideas are continually analyzed in terms of their opposites‚ with the ultimate goal of creating a more enlightened synthesis The ultimate aim of philosophy is the goals is 1. the complete liberty of the
Premium Logic Philosophy Critical thinking
Finance 301 1. The NPV for the truck and the pulley are $2026.75 and $5586.05 respectively. Since these projects are independent‚ the company can choose either project. They both will give the company a return higher than 12% as well. (Math is on last page) 2. A. NPV for Alt A is $1892.17 while the payback is 2.86 years. NPV for Alt B is 2289.66 while the payback is 4.62 years. (Math on last page) B. Since these projects are mutually exclusive only one can be chosen. Since NVP is a better
Premium Investment Net present value
Chapter 2 Progress Questions: 1. Explain the term business ethics. The application of ethical standards to business behavior. 2. Explain the difference between a descriptive and prescriptive approach to business ethics. The descriptive you are merely observing what is going on; where as with prescriptive‚ you are giving advice on what should be happening. 3. Identify six stakeholders of an organization. Stockholders‚ Employees‚ Customers‚ Suppliers‚ Retailers‚ Federal Government 4. Give
Premium Ethics Business ethics
HW # 2- Quiz Chapter 2 1.Corporate Financing. How can a small‚ private firm finance its capital investments. Give two or three examples of financing sources. A small‚ private firm can finance its capital investments in financial markets and intermediaries. The intermediaries include hedge funds‚ mutual funds‚ pension funds‚ and financial institutions such as banks and insurance companies. 2.Corporate Financing. Is it possible for an individual to save and invest in a corporations without lending
Premium Investment
Chapter 1 Cost Accounting: Information for Decision Making Solutions to Review Questions 1-1. Financial accounting is designed to provide information about the firm to external users. External users include investors‚ creditors‚ government authorities‚ regulators‚ customers‚ competitors‚ suppliers‚ labor unions‚ and so on. Cost accounting systems are designed to provide information to internal users (managers). This difference is important‚ because it affects the design of the systems. Financial
Premium Costs Cost accounting Variable cost
Jinal Desai Project Part II: Fisher Effect International Finance Professor. Dr. Li Question 1: Check the money market rate (one year government security) of US and your currency. Answer 1: In 2012‚ the rate for the government security (government bond) was 8.5% but 2013 declined to 8.1% for 1 year maturity. (http://www.ceicdata.com/en/blog/india%E2%80%99s-interest-rate-structure). The exchange rate for December 2012 in IND/USD was 54.2 and December 2013 was 61.9. In the United States‚ the government
Premium United States dollar Inflation Interest rate
CHAPTER 10 QUIZ 1. A mixed cost function has a constant component of $20‚000. If the total cost is $60‚000 and the independent variable has the value 200‚ what is the value of the slope coefficient? a. $200 b. $400 c. $600 d. $40‚000 2. [CMA Adapted] Of the following methods‚ the one that would not be appropriate for analyzing how a specific cost behaves is a. the scattergraph method. b. the industrial engineering approach. c. linear programming. d. statistical regression analysis.
Premium Costs Cost Economics