Question & Answer

Would the world benefit from the general imposition of controls on the movement of international finance?

If this ‘fair’ solution were adopted, what effect would it have on the industry MC curve in Figure 8.3?

Give some examples of stochastic shocks.

Explain why paying dividends is not an effective way to shift income from a corporation to its owners.

What determines the shape and position of the IS curve?

Does the consumer in the importing country gain or lose from dumping?

Describe the three different tax rates discussed in the chapter and how taxpayers might use them.

Distinguish among Accounting Research Bulletins, Opinionsof the Accounting Principles Board, and Statementsof the Financial Accounting Standards Board.

How does the yield on a repurchase agreement differ from a loan in the federal funds market? Why? (LO2)

The president recently vetoed a tax act passed by the House and Senate.  Is the tax act dead?  If not, what will it take for the act to be passed?

Trace through the effects on the foreign exchange market of a fall in the money supply.

Clancey Inc. issues $2,000,000 of 7% bonds due in 10 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 8%. What amount will Clancey receive when it issues the bonds?

What are the advantages of FMS technology, compared to conventional batch operations?

A close friend of yours, who is a history major and who has not had any college courses or any experience in business, is receiving the financial statements from companies in which he has minor investments (acquired for him by his now-deceased father). He asks you what he needs to know to interpret and to evaluate the financial statement data that he is receiving. What would you tell him?

1.    : One of the benefits of a strategy map is that it clearly communicates goals and how they are linked to everyone in the organization. Does a minimum-wage maintenance worker in a hospital really need to understand any goals beyond keeping the place clean? Discuss.

1.      : With respect to competitive strategy, identify and evaluate Casper’s target customers, its core competence, and how it builds synergy and delivers value.

In a turning operation on an aluminum alloy workpiece, the feed = 0.020 in/rev, and depth of cut = 0.250 in. The motor horsepower of the lathe is 20 hp and it has a mechanical efficiency = 92%. The unit horsepower value = 0.25 hp/(in3 /min) for this aluminum grade. What is the maximum cutting speed that can be used on this job?

1.    What do you think the ideal ranking would be of the three skills for an effective manager?

At two levels of activity within the relevant range, average costs are $192 and $188, respectively. Assuming the cost function is linear, what can be said about the existence of fixed and variable costs?

1.    : Both China and India are rising economic powers. How might your approach to doing business with China, a communist country, differ from your approach to doing business with India, the world’s most populous democracy? In which country would you expect to encounter the most rules? The most bureaucracy? Why?

What is friction stir welding (FSW), and how is it different from friction welding?

What are some of the resource changes that can be made to increase plant capacity in the short run?

Solve Problem 24.19 except that in part (a), determine the cutting speeds for maximum production rate

Based on the definition of gross income in §61, related regulations, and judicial rulings, what are the three criteria for recognizing taxable income?

When should a debt security be classified as held-tomaturity?