BEC 3 Flashcards by Mary R

When does a surplus occurs:

When Quantity Supplied > Quantity Demanded

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A product whose demand is positively related to income

Normal Good(Premium Foods such as steak)

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If the income elasticity of demand is negative(demand decreases as income increases) the good is

Inferior Good

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Sales of securities with only limited amount of registration and disclosure

Private Placement

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A single seller of a good or service for which there are no close substitutes

Monopolist

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Mutual Interdependence among firm is a major characteristic of:

Oligopoly

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In a cartel, firms jointly act as:

A Monopolist

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Examines individual units of an economy

Microeconomics

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Examines the big picture

Macroeconomics

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What are the potential risks of globalization?

Cultural Differences
Political Risk
Balance of Power
Supply Chain Mgmt

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The normal sequence of a business cycle:

Expansion
Peak
Contraction
Trough
Recovery

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Which of the following might be considered the most expansionary set of fiscal policies

Increase in gov’t purchase and decrease in taxes. AD curve shift Right and Real GDP to increase

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As domestic currency appreciates in value or becomes stronger:

It becomes more expensive in terms of a foreign currency.

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What are the 3 risk preferences behaviors?

Risk-Indifferent(less common)
Risk-Averse(Most common)
Risk-Seeking(less common)

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An increase in the level of risk would not result in an increase in mgmt’s required rate of return is

Risk-Indifferent Behavior

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An increase in the level of risk would result in an increase in mgmt’s required rate of return is

Risk-Averse

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An increase in the level of risk would result in an decrease in mgmt’s required rate of return is

Risk-Seeking Behavior

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Risk that represents a portion of a single asset’s risk that is associated with random causes & can be eliminated

Diversifiable

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Referred to as Non-market, unsystematic or firm-specific risk

Diversifiable Risk

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Strikes, lawsuits, regulatory actions or the loss of a key account are attributable of

Diversifiable Risk

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Referred to as Market or systematic risk

Nondiversifiable Risk

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Market factors that affect all firms and cannon be eliminated through diversification is attributable of

Nondiversifiable Risk

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Nondiversifiable risk is attributable to factors such as

War, inflation, international incidents and political events

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What is the only relevant risk is

Non-diversifiable Risk

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The biggest component of GDP using the expenditure approach is:

The household sector

Personal income after taxes is called

Disposable Personal Income

The biggest component of GDP using the income approach is

Wages

Govt's imposed maximum price that may be charged for a good or service, which leads to shortage

Price Ceiling

Govt's imposed minimum price that may be charged for a good or service, which leads to surplus

Price Floor

Shortage occurs when

Qty demanded is > Qty Supplied

What determine weather a good is normal or inferior

Income

Equilibrium occurs when

Qty Demanded = Qty Supplied

CPI measures the costs of a market basket of specific goods commonly purchased by:

Consumer

Prints money when the money supply appears low:

The Treasury

Factors of production include:

1. Land 2. Labor 3. Physical Capital 4. Human Capital 5. Entrepreneurship

A nation tends to specialize in goods for which it has

A comparative Advantage

Not consistent with full employment

Cyclical Unemployment

If there is an increase in the resources available within an economy, the economy will be capable of :

Producing more goods and services

When does cost leadership strategies fail:

Too much is focus on cutting costs of the current process

What is the main advantage of a Graphical User Interface (GUI)?

It can eliminate the need for a user to learn a complex set of commands

Which of the following definitions best describes a hot site?

An alternate site with a commercial disaster recovery service that allows the organization to continue business operations

Can not be traced directly to the final product.

Manufacturing overhead

When income rises consumers buy less of

An inferior Good

The control environment is one of the five components of internal control. How is the control environment identified within those five components?

The foundation of all other components

Refers to a specific level or range of variation that is acceptable in reaching particular objectives

Risk Tolerance

The CPU contains

primary storage, a control unit and an arithmetic/logic unit.

William J. Bryan is looking at a demand curve for widgets. In the study of economics, what does this demand curve represent?

The change in the quantity of widgets purchased as the price of widgets changes.

The function of the BUS is to:

the circuitry connecting the CPU to the primary memory and to peripheral devices. -

In computing its predetermined overhead rate, Minor Company included its factory insurance cost twice. This error will result in:

The Cost of Goods Manufactured to be overstated.

The function of input/output devices is to

Transfer data in and out of the CPU

What are some examples of input/output:

1. keyboard 2.monitor 3.scanner 4. printer 5.mouse 6.modem 7. joystick 8.touchpad

Management compensation and performance s/b align with

maximizing long-term value for shareholders.

The Operator is responsible for

the daily computer operations of both the hardware and software

Country A can produce 10 units of Y or 20 units of X. Country B can produce 30 units of Y or 90 units of X. What can be said about this Scenario?

Country A has a comparative advantage in Y and Country B has a comparative advantage in X.

A comparative advantage occurs

when a product can be produced cheaper

Budget variance analysis based on standard unit costs is

Actual costs are compared with standard unit costs based on actual production are used to determine variances.

Process improvement initiatives should be aligned with

1. needs of the firm's customers 2. embraced and communicated by management 3.implemented through training and testing 4. should fit the firm's operations and organizational culture.

Connie Roberts is a production line manager. Which of the following variances would be controllable by Connie?

1. Overhead efficiency variance 2. Labor efficiency variance 3. Material usage variance

Three types of system documentation used by auditors and analysts are:

1. Data Flow Diagrams, 2.System Flowcharts | 3. Entity Relationship Diagrams

Amount of a good supplied change from something other than the price of the good

Change in Supply(Supply Change 1st)

Change is supply will cause:

S ↑ P ↓ and/or S↓ P↑

A change in the amount produces are willing & able to produce resulting solely from change in price

Change in Qty Supplied | P↑ S↑ and/or P↓ S↓

Factors that shift supply curves

E.C.O.S.T E- change in EXPECTATIONS of the supplying firm C- change in production COSTS O- change in the price or demand for other GOODS S- change in SUBSIDIES increase or taxes T-change in production TECHNOLOGY

Monetary policy decisions are made by:

F.O.M.C | Federal Open Market Committee

Effects of a change in supply on equilibrium

S ↑ P ↓ Qty ↑

Effects of a change in demand on equilibrium

D↑ P↑ Qty↑

What are the two ways price elasticity of demand can be measured?

1. Point Method | 2. Mid Point Method

In Perfect(Pure) Competition

"Many" firms in the industry Size of firm is "small" relative to industry Barriers to entry: None Differentiation of Product: None( all firms sell the same commodity product)

Stragetic plans may include maintaining the market share and responsiveness of sales price to make conditions

Perfect(Pure)Competition

Stragetic plan maintaining the market share likely include a plan for enhanced product differentiation and extensive allocation of resources for advertising, marketing, product research

Monopolistic Competition

Focus on market share and call for the proper amount of advertising and ways to properly adapt to price changes or required changes in production volume

Oligopoly

Face a kinked demand curve

Oligopolists

First suggested the idea of value chain analysis

Michael Porter

According to Porter, what are the two major categories of business value activities:

Primary Activties | Support Activities

Under Michael Porter, what are the 5 forces that affect the competitive environment and profitability of the firm

1. Barriers to Entry 2. Market Competitiveness 3. Existence of substitute products 4. Bargaining power of the customers 5. Bargaining power of the supplies

The most common approach in use to the application of overhead is: -

Expected annual capacity

BEC 3 Flashcards

(76 cards)