CLAA05H3 Lecture : Creation stories general lecture notes NOT key terms

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amberbeetle492

14 Dec 2011

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Middle kingdom comes after old kingdom precedes new kingdom. His capital city was in the south, he created his capital at menthes. Medpotamia acadians, different dynasties, rules independently until persians took over. Alexander the great freed them from the persians. Egypt creation story that came from the city of heliopolis. Helios = sun atumre created the universe. 9 gods = ennead chu teffnut deb nut-heaven know the 9 gods. Mespotamia water god ejaculated and created world. Human beings were created to take care of the earth. The cow sets out to destroy all of people because man were being destructive. In bible god decides to detroy all of mankind except noah. In egyptian the divine were having affairs with the women on earth and god was very angry. Ziusudra is th only one who lives from the flood. Pople making too much noise so he wanted to destroy the earth.

Related Questions

Question 3

According to Joseph Schumpeter, the theory of creative destruction describes a process by which

	A	some new products unleash a gale of destruction that drive other new products out of the market.
B		new products unleash a gale of destruction that drives old products out of the market.
C		new products are created by the destruction of capital.
D		the creation of new products never involves the destruction of old products.

Question 4

Which of the following countries had the highest GDP per capita in 2012?

		A Qatar
B		United States
C		Japan
D		Norway

Question 5

________ save a ________ of their income. This ________ capital in their economy and raises economic growth.

	A	Developing countries; large proportion; decreases
B		Developing countries; small proportion; increases
C		High-income countries; large proportion; increases
D		High-income countries; small proportion; increases

Question 6

The demand for loanable funds is determined by the willingness of ________ to borrow money to engage in new investment projects.

A		government
B		households
C		banks
D		firms

Question 7

The U.S. economy has been more stable since 1950.

True

False

Question 8

When the economy reaches a trough in a business cycle, which of the following will occur?

A		Income, production, and employment will continue to fall.
B		Income, production, and employment will begin to rise.
C		Income and production will rise, but employment will continue to fall.
D		Employment rises, but income and production will continue to fall.

Question 9

In a closed economy, what is the relationship between saving and investment?

A		Saving is greater than investment.
B		Investment is greater than saving.
C		Investment is equal to saving.
D		Investment may be greater or smaller than saving.

Question 10

The per-worker production function shows the relationship between ________ per hour worked and ________ per hour worked, holding ________ constant.

A		labor; real GDP; technology
B		capital; real GDP; technology
C		labor; capital; real GDP
D		capital; labor; real GDP

Question 11

New growth theory states that increases in ________ capital will result in ________ at the ________ level.

	A	knowledge; increasing returns to scale; firm
	B	physical; decreasing returns to scale; firm
	C	knowledge; decreasing returns to scale; economy
D		knowledge; increasing returns to scale; economy

Question 12

Which of the following is not a reason why the Industrial Revolution occurred when and where it did?

A		The British government was committed to upholding private property rights.
B		The British government was able to eliminate arbitrary increases in taxes.
C		The British government was able to more easily seize wealth.
D		Institutional changes by the British government helped protect wealth.

Question 13

Growth in real GDP per capita for the world economy was greatest during

A		the seventeenth century.
B		the eighteenth century.
C		the nineteenth century.
D		the twentieth century.

Question 14

Which of the following is a normative statement about economic growth?

A		Economic growth is associated with higher labor productivity growth.
B		Economic growth increases GDP per capita.
C		Economic growth hurts developing countries.
D		Foreign direct investment stimulates economic growth.

Question 15

The effect of a recession on a company like Whirlpool Corporation is such that

A		sales decline more sharply for Whirlpool as compared to firms that do not produce durable goods.
B		profits fall less sharply as compared to firms that do not produce durable goods.
C		the decline in sales is more short-lived as compared to firms that do not produce durable goods.
D		there is no difference in the impact of the recession on its profits as compared to firms that do not produce durable goods.

Question 16

For the recessions in the United States since the 1950s,

A		cyclical unemployment has been non-existent.
B		unemployment rises on average by about 1.2 percentage points 12 months after a recession begins.
C		unemployment falls on average by 2 percentage points 12 months after a recession begins.
D		unemployment rises on average about 5 percentage points 12 months after a recession begins.

Question 17

You are an economic advisor to the president. You are asked to recommend a policy to promote long-term economic growth in the economy. Which of the following policies would you choose?

A		a reduction in sales taxes
B		an investment tax credit
C		a reduction in taxes on luxury yachts
D		All of these

Question 18

In comparison to a government that runs a balanced budget, when the government runs a budget deficit,

	A	the equilibrium interest rate will fall.
	B	business investment will fall.
	C	household savings will fall.
	D	None of these

Question 19

If labor productivity growth slows down in a country, this means that the growth rate in ________ has declined.

A		labor force participation
B		the quantity of goods or services that can be produced by one hour of work
C		the working-age population
D		nominal GDP

Question 20

Policies to promote growth by increasing saving and investment work through

A		decreasing the supply of loanable funds, lowering the interest rate, raising the level of investment in physical capital.
B		increasing the supply of loanable funds, increasing the interest rate, raising the level of investment in physical capital.
C		increasing the supply of loanable funds, lowering the interest rate, lowering the level of investment in physical capital.
D		increasing the supply of loanable funds, lowering the interest rate, raising the level of investment in physical capital.

1) According to new growth theory,

A) physical capital is nonexcludable.

B) knowledge capital is excludable.

C) knowledge capital is subject to increasing returns.

D) knowledge capital is rival and excludable.

2) Knowledge capital is nonrival in the sense that

A) two people can use the same knowledge to develop and produce a product.

B) firms do not compete to be the first to develop new technologies.

C) no single company can be excluded from the benefits of new technologies.

D) firms can benefit from the research and development of rival firms without paying for that

benefit.

3) Which of the following government provisions would help increase the accumulation of knowledge capital?

A) patents

B) copyrights

C) education subsidies

D) All of the above are correct.

4) Which of the following government policies would most likely result in an increase in economic growth?

A) a decrease in the life of a patent from 20 years to 15 years

B) a decrease in the interest rate at which the government provides student loans

C) a decrease in government spending on grants issued through the National Institutes of Health

D) decreased copyright protection on music and movies

5) Creative destruction means that

A) firms develop new products that replace old products in the economy, thereby encouraging

economic growth.

B) economic growth can only be sustained if capital depreciates rapidly.

C) knowledge capital can be created through a system of government subsidies for education and research and development.

D) research and development should only be financed if research and development are incremental (a result of making small changes to existing products).

6) Which of the following explains the ability of the U.S. economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century?

A) continuing technological change

B) immigration

C) additions of a greater amount of capital of the same quality

D) a decrease in the quality of labor

7) By offering more generous unemployment insurance programs, European countries can expect

A) to pay less in taxes than in the United States.

B) workers to gain new skills quickly in response to fluctuations in the labor market.

C) shorter periods of unemployment for their workers.

D) longer periods of unemployment for their workers.

pinklouse68

Which of the following risks cannot be diversified away?

	A.	risk of a local natural disaster affecting company production
	B.	risk created by world political happenings
	C.	risk of losing a major contract
	E.	risk of a failed marketing campaign

Magee Company's stock has a beta of 1.20, the risk-free rate is 4.50%, and the market risk premium is 5.00%. What is Magee's required return?

	A.	10.25%
	B.	10.50%
	D.	11.00%
	E.	11.25%

Stock A has a beta of 1.5 and Stock B has a beta of 0.5. Which of the following statements must be true about these securities? (Assume the market is in equilibrium.)

	A.	When held in isolation, Stock A has more risk than Stock B.
	C.	Stock A would be a more desirable addition to a portfolio than Stock B.
	D.	The required return on Stock A will be greater than that on Stock B.
	E.	The required return on Stock B will be greater than that on Stock A.

Which of the following statements is CORRECT?

	B.	Portfolio diversification reduces the variability of returns on an individual stock.
	C.	The smaller standard deviation is, the less likely that actual returns will be closer to expected returns, the lower the investment risk.
	D.	A stock with a beta of 1 is more risky than an average stock on the market.
	E.	A well-diversified investor will require to earn higher return on stocks with higher beta.

Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT? (WACC is the weighted average cost of capital, the financing rate, or discount rate)

	A.	The projectâs IRR increases as the WACC declines.
	B.	The projectâs NPV increases as the WACC declines.
	D.	The projectâs IRR decreases as the WACC declines.
	E.	none of the above is correct.

Burlees Inc.âs CFO has collected the following information to calculate its WACC:

â¢ The companyâs capital structure consists of 60% debt and 40% common stock.

The company has 20-year, 12% annual coupon bonds that have a face value of $1,000 and sell for $1,200.

The company uses the CAPM to calculate the cost of common stock. Currently, the risk-free rate is 3% and the market risk premium is 5%. The companyâs common stock has a beta of 2.

The companyâs tax rate is 40%.

What is the companyâs cost of common equity?

	A.	9.65%
	B.	13.00%
	D.	17.60%
	E.	18.91%

Burlees Inc.âs CFO has collected the following information to calculate its WACC:

â¢ The companyâs capital structure consists of 60% debt and 40% common stock.

The company has 20-year, 12% annual coupon bonds that have a face value of $1,000 and sell for $1,200.

The company uses the CAPM to calculate the cost of common stock. Currently, the risk-free rate is 3% and the market risk premium is 5%. The companyâs common stock has a beta of 2.

The companyâs tax rate is 40%.

What is the companyâs weighted average cost of capital (WACC)?

	A.	8.69%
	B.	9.21%
	D.	11.04%
	E.	12.51%

Which of the following statement is correct?

	A.	Higher flotation costs tend to reduce the cost of equity capital.
	C.	The component cost of preferred stock is expressed as rp(1 - T), because preferred stock dividends are treated as fixed charges, similar to the treatment of debt interest.
	D.	A higher risk projectâs WACC should be adjusted higher.
	E.	Retained earnings bear no capital cost at all.

CLAA05H3 Lecture : Creation stories general lecture notes NOT key terms

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