When the Sarbanes-Oxley Act that established new accounting rules was passed, analysts suggested that the new rules would not improve protections for the investing public, but it would result in more work for accountants. If the professors are right, these regulations are an example of:
A. comparative advantage.
B. laissez faire.
C. demerit goods.
D. government failure.
Answer: D
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The McCallum management principles advocate the use of
a. time-motion study to determine the most productive way to perform job-tasks. b. employee stock-purchase programs. c. internal accounting systems and performance evaluations. d. leveraged buy-outs to increase the firm's control of an industry.
Economic development encompasses which of the following measures?
a. The political environment b. All of the answers are correct. c. Education d. Economic growth
If the French government increases its expenditures and reduces taxes, then France's interest rate
a. and its exchange rate rise. b. rises and its exchange rate falls. c. falls and its exchange rate rises. d. and its exchange rate fall.
Sketch a long-run production function with isoquants numbered so that the graph clearly shows increasing returns to scale over the entire range of production.
What will be an ideal response?