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QUESTION NO: 1
A coal burning power plant in upstate New York has been the only provider of power in the region for many years. Recently, a plant that uses wind to create energy was built nearby. The wind plant produces less energy than the coal plant but at a lower cost. Will the coal plant be able to remain competitive in this new market environment?
A. Yes, if the coal plant sells energy at a price below its marginal cost.
B. Yes, if the coal plant's decreased output is still sufficient to recover costs.
C. No, the coal plant's customers will switch to the wind powered plant.
D. No, the coal plant will be forced to cut prices and operate at a loss.
Answer: B
QUESTION NO: 2
Which of the following financial statements is MOST useful in determining the capital expenditures of a company during the past year?
A. The balance sheet, using the ending balance of property, plant, and equipment
B. The income statement, using the depreciation expense per year
C. The statement of cash flows, using the investing section
D. The statement of retained earnings, using the profits that were reinvested in the company
Answer: C
QUESTION NO: 3
A nutritional study is released that touts the benefits of eating cereal for breakfast.
Concurrently, a new type of grain is invented that reduces the input costs in producing cereal. What will happen to the equilibrium price and the quantity consumed of bananas, a complement to breakfast cereal?
A. The price and quantity consumed of bananas will not change.
B. Both the price of bananas and the quantity consumed will decrease.
C. The price of bananas will increase, and the quantity consumed will decrease.
D. The quantity consumed of bananas will increase, and the effect on price cannot be determined.
Answer: D
QUESTION NO: 4
Which of the following options is an example of revenue?
A. $20,000 received as a down payment from a customer when they placed their order
B. $10,000 received from a customer for goods purchased a month ago
C. An order for $3,000 received from a customer
D. $300 received from a customer when they purchased and received an item
Answer: D
QUESTION NO: 5
Assuming the confidence level remains constant, what happens to the width of the confidence interval as the sample size increases?
A. The confidence interval widens.
B. The confidence interval narrows.
C. The confidence interval remains unchanged.
D. It is not possible to determine the changes without seeing the data first.
Answer: B
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Updated: May 26, 2022