ADMS 1500 Lecture : Wed Sept 21 MOR.docx
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Related Questions
1.Which of the following statements is most accurate regarding personality stability?
| Because it has a biological basis in infant temperament, personality remains fairly stable throughout the life span. |
| Personality is mostly influenced by social roles and norms, so it is difficult to predict accurately. |
| People make many characteristic adaptations throughout life, which can cause substantial changes in personality over time. |
| Personality tends to be stable in adulthood but can be predicted only from about age 15 or older. |
2.
Research on the Rorschach inkblot test indicates that it:
| reliably assesses id/ego/superego conflicts and specific psychological disorders related to these conflicts |
| does an excellent job of identifying specific psychological disorders |
| identifies many normal, healthy adults and children as psychologically disturbed |
| is the most reliable of the many projective tests in use 3. Research has shown that, in predicting the behavior of people we know, we:
4. Derrick feels that he deserves more than other people, and he often tries to manipulate people to get what he wants. Whenever someone challenges him, he gets very angry. Derrick likely:
|
According to the information below please answer the following questions:
ENTR 187 Business Plan App Translator
Industry Analysis
INDUSTRY SIZE
When you talk into your phone in any of the Worldâs major languages there is a suite of applications that can turn your words into a foreign language, either in text or electronic form. Mobile translation helps get rid of barriers worldwide. The top current mobile translation apps available for both iOS and Android are Google Translate, iTranslate Voice, SayHi, WayGo, and TripLingo. In addition to apps, there are two new devices that will translate in live time. The user speaks in their native tongue and the device will output the desired target language. These devices are The ili and The Pilot.
Industry at a Glance
The statistics above are listed from 2016. The industry that we have decided to incorporate our product into is âSpeech and Voice Recognition Software Development.â The entire Industry saw Revenue of almost $25 Billion USD. In total, there is over 900 companies involved in the industry.
The biggest company involved is Nuance Communications Inc. which holds a 2.1% market share of the industry. After Nuance Communications Inc., the next biggest company involved is Google Inc. Google participates in the industry through its development of voice and speech recognition software for mobile and online services. This includes the âGoogle Translateâ app available for any mobile device. Current market share data is not available. Apple is another World renowned company involved in the industry through their Siri services. Siri is available in 40 dialects of several different languages.
Industry Growth Rate and Sales Projections
The industry has been steadily growing over the past decade averaging an 8% growth rate in terms of revenue. Through 2021, annualized revenue growth is supposed to grow at a rate of 7%. The industry continues to grow as the widespread adoption of mobile phones continues to grow. The number of mobile internet connections is expected to surpass 331 million in the year 2021. Not every cellphone user actually needs a mobile translation app. However, as the demand for Speech and Voice Recognition Software continues to rise. The apps available on the market will continue to improve.
The potential rise of wearable smartwatches and other smart appliances is also expected to bring about growth opportunities in the industry. Speech and Voice Recognition Software is being implemented into these devices now and will continue in the future. Language is processed by machines as data. Machines are indiscriminate towards what languages they can handle. As long as data is being captured by devices, the software will improve in the future.
The industry is broken up into products and services. 50% of the industry is dedicated to PCs and Macs (such as Rosetta Stone) the other half of the industry is for Mobile devices and Automobiles. The Auto industry doesnât necessarily use translators but they still use Voice Recognition Software.
Nature of Participants
In 2017, mobile apps have now became a key piece to a new way of doing business, a new way of communicating, and simply a new way of conducting life on a day to day basis. With the Play and App store housing hundreds of thousands of apps, competition remains very innovative as more and more developers (or developer studios, who provide application development for third party companies, entrepreneurs and so forth) continue to flood the market with free or purchasable applications. Also, with the vast changes in technology, the app has crossed over from the smart phone over to televisions, media players, and cars, allowing the app industry evolve into a broader economy. With that said, this plays into the ability for more doorways for different creative purposes that apps can be used for. As with every form of technology, what we thought apps were capable of just 5 years ago have soared way beyond those capabilities today.
Key Success Factors
There are many success factors that we have taken into consideration to assure that our product meets its highest potential. The number one factor should always be the experience that the customer receives from the product. Therefore, we will provide users a very friendly and easy-to-use interface, keeping it simple, while making sure that the features give them a complete and total experience so not one need is left unaddressed or unattended to. Focus groups will be conducted even after launch, to allow the customer experience to not only be the best it can be, but to also evolve that experience over time, keeping the app and its content and functions relevant to the users.
Secondly, the app will be universal for all mobile devices, including iOS and Android. The app will be able to function on all mobile devices, tablets, chromebooks, smartwatches, and any other portable smart device.
Third, we will provide easily accessible customer service and reliability. Our support team will be available seven days a week by either phone or via live chat. Updates and maintenance will keep content fresh and any back end issues at bay.
Compatibility: Our app will be compatible with other apps and programs, allowing the user to easily share, store and access files outside of the app itself. Files can be shared via bluetooth, email, NFC technology, text message and social media. Files can be converted to wav. and mp3 format.
INDUSTRY TRENDS
-Business Trends
-According to smashingmagazine.com, consumers are evolving more rapidly than businesses. Today, the mobile Internet has clearly become a necessity for many users.
-According to App Annie reports, in 2015, the mobile app industry generated a whopping $41.1 billion in gross annual revenue and that this figure will rise to $50.9 billion
-According to Statista, a Windows Phone app fetches $11,400 on average per month, whereas iOS app generates $8,100. Android makes $4,900 in average monthly revenue
-According to Smashingmagazine.com, the subscription app model generates predictable, long-term revenue flow for the owner by keeping customer loyalty high.
-According to techcrunch.com, in 2016, worldwide downloads were up 15 percent year-over-year, time spent in apps was up 25 percent, and the revenue paid to developers increased by 40 percent.
Long Term Prospects
In the short-term, our success will tie into the success of the app market as it stands today. The same industry growth and advancement in technology will also be key for our long-term success. During our first year we will see success through free user downloads, building revenue through advertising. Subscription use will build towards the end of year one and continue to double as more revenue that is brought in through advertising, will then be used for marketing purchases, growing our impressions and gaining more and more subscription members.
-Growing Millennial population
-Growing percentage of individuals that own mobile smart phones or smart devices
-Growing percentage of travelers worldwide
-Advances in technology will continue to evolve the functions and features of the app
-Build on residual revenue through long-term subscribers
Company Description
History
The translation of natural languages by machine, first dreamt of in the seventeenth century, has become a reality in the late twentieth. Computer programs are producing translations - not perfect translations, for that is an ideal to which no human translator can aspire; nor translations of literary texts, for the subtleties and nuances of poetry are beyond computational analysis; but translations of technical manuals, scientific documents, commercial prospectuses, administrative memoranda, medical reports.Machine translation is not primarily an area of abstract intellectual inquiry but the application of computer and language sciences to the development of systems answering practical needs. After an outline of basic features, the history of machine translation is traced from the pioneers and early systems of the 1950s and 1960s, the impact of the ALPAC report in the mid-1960s, the revival in the 1970s, the appearance of commercial and operational systems in the 1980s, research during the 1980s, new developments in research in the 1990s, and the growing use of systems in the past decade.
A translation system allowing the Japanese to exchange conversations with foreign nationals through mobile phones was first developed in 1999 by the Advanced Telecommunications Research Institute International-Interpreting Telecommunications Research Laboratories, based in Kansai Science City, Japan. Words spoken into the mobile device are translated into the target language and then sent as voice to the other user's mobile phone. Machine translation software for handheld devices featuring translation capabilities for user-input text, SMS and email, was commercially released in 2004 by Transclick and a patent was issued to Transclick for SMS, email and IM translation in 2006.
In November 2005, another Japanese company, NEC Corporation, announced the development of a translation system that could be loaded in mobile phones. This mobile translation system could recognize 50,000 Japanese words and 30,000 English words, and could be used for simple translations when travelling. However, it was not until January 2009 that NEC Corporation officially demonstrated their product. Technological advances within the miniaturization of computing and communication devices have made possible the usage of mobile telephones in language learning. Among the early projects were the Spanish study programs which included vocabulary practice, quizzes, and word and phrase translations.
Soon after, projects were developed using mobile phones to teach English at a Japanese university. By 2005, they shifted their focus to providing vocabulary instruction by SMS. A similar program was created for learning Italian in Australia. Vocabulary phrases, quizzes, and short sentences were sent via SMS.
Now, Google Translate is the online translation leader. See also Info scope, which is a handheld device composed of a digital camera and wireless internet access, developed at IBM's Almaden Research Center. As well as Duolingo application has been develop to not only translate but also teach the consumers of today to read, write and speak the language, and finally the LLI has been introduced.
The ili is a new innovative technology that helps business professionals or travelers to communicate with other cultures, by simply by the push of a button. It allows the consumer to speak into the device and it will project it back in whatever language chosen by the consumer.
Mission Statement:
Striving to continually improve the language translation services by bringing convenience, quickness, ease, quality and reliability to our customers while bridging language barriers and bringing people with different languages together.
Product and Services
Consumers of today are now more interested in the new high tech gadgets, yet more than anything consumers are obsessed with their mobile device. And in now a dayâs millennials are the consumer taking the initiative to be more diverse and have more experiences in life. Thatâs why we believe that combining both the ili translator and duolingo into one app would be the perfect product for the everyday person of today.
By combining both products, the app can be used in an everyday setting or in a professional setting. It will allow professionals to converse with clients from around the globe in a more personable level. And it will allow the everyday person to become more diverse and intuitive in more cultures.
The app will give the consumer the ability to understand another language, by having it translated directly back to the consumerâs language and vice versa. It will allow different cultures to communicate with one another. It will not only allow consumers of different culture to communicate with one another but it will also allow consumers to learn a new language. Each app will have a minimum of 3 free languages that will allow you to translate or will allow you to learn the language. Learning the language is taken from the aspect of duolingo, by having consumers learn how to read, write, and speak different languages by different game levels and educational readings. And every time, a consumer wishes to learn different languages they will have the ability to purchase more upgrades which will offer such languages.
Current Status and Ownership: We are a Partnership as there are five partners in ownership who are personally liable for all business debts.
Legal Status and Ownership
Key Partnerships: None at this time.
Market Analysis
Market Segmentation and Target Market Selection: This App translator will be an innovative tool in the travel and the translation industry. The market segment the app will target will be the younger generations such as the millennials, which is considered to consist people within the ages of 16-34. One reason why the app should target the younger generations is because they are more interested in traveling abroad than the older generations. The United Nations estimates that this demographic of the younger generation generates more than $180 billion in annual tourism revenue, which is an increase of nearly 30 percent since 2007. The American Express Business Insights also stated that millennials are the fastest growing age segment in terms of money spent on travel. Millennials are also considered to be always connected to the internet with mobile devices and continuously on the move. Millennials do not spend their vacations similar to the older generation on the beach but they tend to spend their time traveling through cities and getting to know the country they are in. These factors of the younger generations traveling more, different way of traveling and an increase in spending while traveling are the textbook conditions for the App translator. Younger people always have their smart phones on them which is why it will be easier for younger people to have translation through an app instead of getting a translator or carrying an extra device. Since younger people like to travel in cities and immerse themselves in the culture, it is again just much simpler and more accessible to have their translation service on their phones.
Buyer Behavior:
Millennials have a lot of influence over older generations and are trendsetters across most of the industries from food to fashion. For millennials reviews of a product from friends and other like-minded people carry a lot of weight. Which means that if people from a certain group do not like the product than other people in that same group are less likely to buy the product. The fear of debt has been instilled in millennials because of student loan debt and the soft job market. This fear has led less and less millennials to purchase using credit cards and going into debt, which why is a recent Bankrate study revealed that over 65% of millennials donât even have a credit card. That is why millennials try to save up to make the purchase with cash or debit. This does not mean that millennials are buying less, it just means that they are finding alternative ways of purchasing. An example of a different way of purchasing that millennials are doing is financing, this allows them to buy an item now and spread out their payments over several months. One of the best ways to see the buying behaviors of millennials is to watch the social media outlets. Research shows that 81% of millennials are on Facebook, and they also check their social media apps on their mobile devices around 43 times a day. An example of how social media is working well for consumers is popular unboxing videos on YouTube, where an individual films the process of unpacking new products and letting viewers know what they can expect from the product when they purchase it. Most business miss with some of their products because the products did not have innovation with purpose. This means that millennials are more likely to try new products but only if the new product makes their lives easier in some way.
Competitor Analysis:
Currently there is no product like this in the market, that utilizes an app to translate as smoothly as device that translate in live time. A person can use google translate, iTranslate Voice, SayHi, WayGo and TripLingo, but they are not as smooth/accurate. The product that is closest to the app translator would be âiliâ and this product has not even been released yet, it is set to be released this year. âiliâ offers the users real time translation by speaking into a handheld device in 0.2 seconds; but the drawbacks are that you have to purchase and extra device and also that it can only support three languages on one device for different languages a consumer would need to buy an another âiliâ device. The reason why there are no real competitors for the app translator is because the app translator will be combining real time translation of âiliâ and language teaching capabilities of Duolingo and Rosetta Stone.
Estimates of Annual Sales and Market Share:
Looking at the trend of the rapidly growing app usage we can assume that more people are likely to download the app than carry an extra device that will help with the translation. Not just the technological part but the entire translation industry is very fragmented; which means there are a lot of firms providing either regular translators or devices/apps to help with translation.The market of the translation industry is expected to grow to $37 billion by 2018. Since the market is highly fragmented it is hard to tell how much of the market is allocated to each of the firms. Which is why we can only estimate that we will attain around 5-10% of the market share in the first couple of years. We can estimate that we can get at least 40 customers a month but the goal is to try to reach at least 50 a month on the first couple of months. Most of the assumptions are based on estimations because there is relatively no data on how the market share is distributed in this market and what is the expected growth rate for the massive number of firms in the translation market.(Translation, n.d.)
Economics of the business
Revenue Drivers and Profit Margins
In the first twelve months in developing the application, our goal is to convert consumers to the subscription and have a minimum of 50 customers per month with the ad block included. We would be selling the one time subscription fee for $24.99 per customer as well as the one time adblock for $9.99 and the monthly fee would vary and is not included in the table below. In just the subscription fees the App would have 3 language software subscriptions and if the consumer pays more the prices would vary. Our total expenses to begin the business would be $25,080 in the first year including everything from advertising to the manufacturing of the app. In the first year out net income would be at a negative $4,092. In some businesses in order to increase the profit you have to lose money to begin with. At first we might lose some money if you want to look at it but our long term revenue is sure to surpass the net income of the first year.
| Year | 1 | 2 | 3 | |
| Revenues | ||||
| Software Subscription | 20,988 | 35,500 | 53,500 | |
| Total Revenues | 20,988 | 35,500 | 53,500 | |
| Expenses | ||||
| Advertising/Marketing | 1,500 | 2,000 | 3,000 | |
| Attorney Fees | 2,000 | 2,000 | 2,000 | |
| Employees | 10,000 | 10,000 | 15,000 | |
| Internet | 125 | 125 | 125 | |
| License and Permits | 375 | 375 | 375 | |
| Office Equipment Lease | 280 | 280 | 280 | |
| Office Space | 0 | 0 | 0 | |
| Office Supplies | 1,000 | 1,000 | 1,000 | |
| Phone | 200 | 200 | 200 | |
| Software Development | 5,000 | 5,000 | 5,000 | |
| Software Manufacturing | 3,000 | 3,000 | 3,000 | |
| Technical Maintenance | 1,500 | 1,500 | 1,500 | |
| Travel/Entertainment | 0 | 0 | 1,500 | |
| Utilities | 0 | 0 | 0 | |
| Website/Webhosting | 100 | 100 | 100 | |
| Total Expenses | 25,080 | 25,580 | 33,080 | |
| Net income | -4,092 | 9920 | 20420 |
Fixed and Variable Cost:
The companyâs fixed costs will mainly be Attorney fees, Internet, Licence/Permit fees, Office equipment lease, phone bills, software development, software manufacturing, technical maintenance and web hosting. This is because all of these expenses are expected to stay the same throughout the first couple of years. These costs are expected to stay the same because the company will be relatively new and the expected growth is not exponentially high in the first couple of years. The costs that are variable are the marketing, employee wages, and travel. These costs are the variable cost because these costs can change very fast as the needs of the company change over time, compared to fixed cost which only change after a large effect on the business such as increase in funding or growth over the years forces the company to expand.
Operating Leverage and Its Implications
Operating Leverage
Implications
Start-up Costs:
The company I-lingo will be a brand new business with startup expenses as every other company does. In producing the app, partnering with Doulingo the company will be able to expand on Doulingoâs original application and venture out to a more advanced application. The companyâs total expenses in the first year would be an estimated $25,080. This estimated number was calculated by the estimated amount it would cost to develop the app, the amount of money we would need to pay employees, advertising/marketing, etc. The financial sector of I-lingo found an app develop estimator online that gave us a really rough estimate on where to start our expenses in just producing the app itself, which would have cost us twice as much with an average price of $100K. The estimate of $15,000 to produce the app led us to think of other expenses such as paying employees, licenses, permits, utilities, advertising and etc.
Break-even Chart and Calculation:
I.Marketing Plan:
A.Overall Marketing Strategy
B.Product, Price, Promotion, and Distribution
C.Sales Process (or Cycle)
D.Sales Tactics
Proprietary Issues:
The company will have to get a patent on the way app delivers the translation at a fast and accurate pace, because the technology that will be used in the app will be new and innovative in that field. The type of patent the company will need to get will be a utility patent from the US Patent and Trademark Office, this is because a utility patent covers the creation of a new improved/useful product, process/machine. After filing for the utility patent the company will be able to hold the patent in the United States for up to 20 years.
The name of the company ilingo will be trademarked in order to create an exclusive identity of the companyâs product/services and the recognition of the companyâs ownership of the brand. To file a for a trademark in the United States the company will have to file with the US Patent and Trademark Office. The trademark in the US will be renewable every 10 years as long the the company remains the use of the name.
The other licenses that the company ilingo will need to acquire will be patents and trademarks in other countries around the world. Since ilingo will be a new startup it would not make sense to start applying for patents and trademarks in other countries in the first couple of years. However, when ilingo gets a large enough customer base in the United States and it is considering marketing to potential customers in other countries ilingo will need to secure their intellectual property in other countries at that point.
Operations Plan
General Approach to Operations
Day to day operations will mainly consist of back stage activities, as our tangible capital will remain very limited. The five founders provide sound and efficient staffing for maintaining business needs as well as customer demands.
-Labor: There is currently no need to operate outside of the five founders, which will keep labor costs down and keep activities within day to day operations very close-knit. Future planned marketing campaigns may consist of volunteers or interns, in attempts to spread awareness of our brand and product. Small incentive programs may become available, as in a free 3 month membership to our app, but all interns will be cost free and 100% volunteer work.
-Roles of the 5 founders:
-CEO:
-
Remain focused on people, product, and market.
Brand management and increase market credibility.
Maintaining relationships with partners and investors.
-COO:
-Designing and implementing business strategies, plans and procedures.
-Establishing policies that promote company culture and vision.
-Overseeing operations of the company and the work of executives (IT, Marketing, Sales, Finance etc.).
-Evaluate performance by analyzing and interpreting data and metrics
-Write and submit reports to the CEO in all matters of importance
-Assist CEO in fundraising ventures
-Participate in expansion activities (investments, acquisitions, corporate alliances etc.)
-Manage relationships with partners/vendors
-CFO (CTO):
-All financial overseeing will be done in house, but the more important role of the CFO related to day to day operations is their duty as the head of Technology. The CFO lead the development of the app, and will continue to work as our IT and technical support, and will work directly with customer inquiries, and pushing through timely updates for the app.
-CMO:
-Evolve product for consistent market fit, adapt to market changes.
-Continually collect new data to test changing demand.
-Track customer acquisitions and lifecycle to improve and expand demand.
-Work directly with advertising partners, building outside relationships.
-Works directly with CFO/CTO on maintaining image and brand.
-Builds new partnerships to increase and expand target market, customer use, and customer engagement by creating new marketing channels worldwide.
-CHO (Head of HR): Not applicable at this time.
- Materials and equipment: All materials and equipment will be personally funded and incur zero cost to the company.
Business Location/Facilities
A key element of keeping costs down with more flexibility to maintain profits is that there are no overhead costs for business location. All business will be operated out of in house facilities that will not incur any fixed or variable costs. If any costs are involved in the area of location, these costs will be personal costs and will not fall under the companyâs finances. Ultimately, much of our operations could take place in any facility that has basic internet and wifi access.
Section VIII: Design and Development Plan
CURRENT STATUS:
Our product is currently under development by our information systems engineers and our software development engineers. The app will use the GNMT data base. The GNMT database is owned and powered by Google. GNMT stands for Google Neural Machine Translation system. It essentially takes into consideration source words and phrases, but also broader contexts of where they appear in sentences, and what are the other words and phrases around them.
For example, when translating Spanish-English, French-English, we are able to then code the system from translations of pairs it has not seen before. It is a self-learning algorithm. The database will then âlearnâ how to translate between French-Spanish by using the base language of English.
Our Company is partnering with Nuance Communications to help develop our translation software. Nuance focuses on server and client side speech recognition. They have helped companies such as, Apple, when they came out with Siri.
Similar to Siri, we need our product to be able to combine speech recognition with advanced natural-language processing. The hardest part about this process is normally translators require an internet connection, which allows the client to connect to the server. We want to change the game by storing the base language and the target language directly on the client for faster translation. The amazing part about not needing an internet connection is that our users will be able to go to rural vacation destinations and assimilate with the natives of that country.
CHALLENGES AND RISKS:
The team is working diligently to introduce the product into the market. We need more funding for our software development and overall costs. Creating an application that can be independent of an internet connection is very expensive. However, we are not paying ourselves a salary until we become profitable.
1.What Are the legal status and ownership process to this new app?
2.What would be the ideal operating leverage and its implications?
3. What is the desired profit margin?
4. what are the sources and uses pf funds statement?
Suppose that, instead of taking this test, you could either have worked and earned income or partied and had a pleasurable time. Your opportunity cost of taking the test is the
| a. | forgone working or partying, depending on which was your next best choice. | |
| b. | forgone work. | |
| c. | forgone working and partying. | |
| d. | test because you are taking it. |
1 points
QUESTION 2
A trend is
| a. | a measure of closeness on a scatter diagram. | |
| b. | a general tendency for a variable to rise or fall. | |
| c. | the maximum value of a variable. | |
| d. | the difference between the maximum value of a variable and the minimum value of the variable. |
1 points
QUESTION 3
A time-series graph measures
| a. | time on the y-axis and the variable or variables in which we are interested on the x-axis. | |
| b. | time on the x-axis and the variable or variables in which we are interested on the y-axis. | |
| c. | the value of one variable against the value of another variable. | |
| d. | the value of an economic variable for different groups in a population at a point in time. |
1 points
QUESTION 4
Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care. Based on this observation, Canada has decided that "everyone, regardless of their ability to pay" is the answer to what microeconomic question?
| a. | Why will we offer health care? | |
| b. | How will health care be produced? | |
| c. | For whom will health care be produced? | |
| d. | What type of health care will be produced and in what quantity? |
1 points
QUESTION 5
As a shoe factory adds more workers, shoe production grows, reaches a maximum, and then shrinks. In a diagram that has the number of workers on the horizontal axis and the number of shoes on the vertical axis, the relationship between the number of workers and the number of shoes starts as ________ and then, after the maximum point, is ________.
| a. | positive; negative | |
| b. | negative; positive | |
| c. | linear; negative | |
| d. | positive; linear |
1 points
QUESTION 6
Microeconomics includes the study of the
| a. | choices made by individuals and businesses. | |
| b. | recessions and inflation in the global economy. | |
| c. | aggregate effects on the national economy. | |
| d. | reasons why the government changes interest rates. |
1 points
QUESTION 7
When Fresh Express Salads decides to mechanically pick all of its lettuce, it directly answers the ________ question.
| a. | when | |
| b. | for whom | |
| c. | how | |
| d. | what |
1 points
QUESTION 8
Proponents of cuts in income tax rates argue that when income tax rates are cut, workers have an incentive to increase their work hours. This argument is based on the assumption that
| a. | the opportunity cost of working is negative. | |
| b. | the marginal cost of each additional work hour is not important to most workers. | |
| c. | workers are irrational. | |
| d. | workers make decisions based on the marginal benefit of each hour worked compared to the marginal cost of work. |
1 points
QUESTION 9
A choice made by comparing all relevant alternatives systematically and incrementally is
| a. | an opportunity cost. | |
| b. | a benefit. | |
| c. | a sunk cost. | |
| d. | a choice on the margin. |
1 points
QUESTION 10
A normative statement
i. can be tested as to whether it is true or false.
ii. is considered negative.
iii. depends on a person's values.
| a. | i, ii, and iii | |
| b. | iii only | |
| c. | i and iii | |
| d. | ii and iii |
1 points
QUESTION 11
Normative statements
i. describe how the world is.
ii. describe how the world ought to be.
iii. depend on people's values and cannot be tested.
| a. | iii only. | |
| b. | i only. | |
| c. | ii and iii. | |
| d. | ii only. |
1 points
QUESTION 12
In order to determine whether to major in economics, a rational individual compares the ________ of the decision.
| a. | positive benefits and normative costs | |
| b. | normative benefits and positive costs | |
| c. | marginal benefit and marginal cost | |
| d. | opportunity cost and the sunk cost |
1 points
QUESTION 13
If x increases whenever y decreases, then x and y are
| a. | positively related. | |
| b. | negatively related. | |
| c. | not related. | |
| d. | related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis. |
1 points
QUESTION 14
Rational choice
| a. | is what you must give up get what you want. | |
| b. | is made by comparing different incentives. | |
| c. | making the choice. | |
| d. | provides the answer to only the "how" question. |
1 points
QUESTION 15
Scarcity results from the fact that
| a. | choices made in self-interest rare not always in the social interest. | |
| b. | not all goals are desirable. | |
| c. | people's wants exceed the resources available to satisfy them | |
| d. | we cannot answer the major economic questions. |
1 points
QUESTION 16
When Delta decides to quit flying to Lithuania, it directly answers the ________ question.
| a. | what | |
| b. | why | |
| c. | for whom | |
| d. | how |
1 points
QUESTION 17
A normative statement
| a. | says what is currently believed about the way the world operates. | |
| b. | depends on someone's values. | |
| c. | cannot use the word "should." | |
| d. | must be tested to determine if it is correct. |
1 points
QUESTION 18
Which of the following statements best describes the study of economics? Economics studies how
| a. | to organize production so that scarcity does not occur. | |
| b. | to create incentives so that scarcity does not exist. | |
| c. | firms make profits. | |
| d. | we make choices in the face of scarcity. |
1 points
QUESTION 19
Which of the following best defines economics?
| a. | Economics teaches how to limit our wants. | |
| b. | Economics is concerned with prices and quantities of goods and services, both at the individual level and at the industry level. | |
| c. | Economics helps you earn as much money as possible. | |
| d. | Economics studies how to choose the best alternative when coping with scarcity. |
1 points
QUESTION 20
In economics, cost is ________, and benefit is ________.
| a. | the amount of money that you pay for something; the amount of money that someone else is willing to pay you | |
| b. | what you are willing to pay on the margin; what the government pays you when you are unemployed or retired | |
| c. | what you must give up to get something; what you are willing to give up to get it | |
| d. | the amount of money that you pay on the margin; the amount of money that you receive on the margin |
1 points
QUESTION 21
If Jessie studies economics for two hours instead of going to the movies with her friends, then
| a. | the opportunity cost of studying is the missed movie. | |
| b. | Jessie is ignoring a sunk cost | |
| c. | Jessie is not responding to any incentives. | |
| d. | Jesse definitely is making a rational choice. |
1 points
QUESTION 22
Going skiing will cost Adam $80 a day. He also loses $40 per day in wages because he has to take time off from work. Adam still decides to go skiing.
| a. | The $80 price of skiing is a sunk cost and so did not affect Adam's decision. | |
| b. | He loses a total of $120 per day, so his decision is irrational. | |
| c. | His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost. | |
| d. | Adam's lost $40 per day in wages is a sunk cost and so did not affect his decision. |
1 points
QUESTION 23
If a curve falls and then rises, it
| a. | has a maximum. | |
| b. | has a linear relationship. | |
| c. | has a minimum. | |
| d. | has a constant slope relationship. |
1 points
QUESTION 24
In 2003, Michael Jordan decided to retire from professional basketball. Which of the following was an opportunity cost of his decision?
| a. | the avoidance of pain and injury from playing one more year | |
| b. | the time he could spend with his family while retired | |
| c. | the lost salary from playing one more year | |
| d. | the value of new employment opportunities that would await him |
1 points
QUESTION 25
Which of the following statements is a normative statement?
| a. | Military spending as a percent of government spending decreased by 5 percent in the 1990s. | |
| b. | Every American household should have health care insurance coverage. | |
| c. | Welfare reform has decreased the amount the government spends on welfare. | |
| d. | The price of computers fell last year. |
