Economics of Enterprise Answers

he rate of interest rises. - will effect value of the firm

The rate of interest rises. - will effect value of the firm

The firm is required to install pollution-control equipment.- will increase value of the firm

A new competitor enters the market.

The production department achieves a technological breakthrough, which reduces
production cost.- will increase value of the firm

Question 1: Acculturation differs from other types of processes of change because it always involves an element of
a.force
b.improvement
c.cultural decline
d.religious change


Question2: Acculturation occurs when two societies with different cultures come into prolonged, firsthand contact, and one or both of these societies experience major processes of change
a. True
b. false
Question3: Almost anything humans can lay their hands on can become an object of artistic expression - skin, hair, dress, dwellings, vehicles, weapons, utensils, etc
a.True
b.false
Question4: Anthropologists interpret myth as the ___________ of cultures that do not use scientific methods: myths explain the world and a people's place in it.
a.narrative
b.religion
c.worldview
d.folklore

Question5: Art in most cultures is primarily aesthetic and nonuseful
a.True
b.false
Question6: Culturally specific people, animals, and monsters seen in the deepest stage of trance are called iconic images
a.true
b.false

Which of the following rules is CORRECT for capital budgeting analysis?
he interest paid on funds borrowed to finance a project must be included in the project’s estimated cash flows.
Only incremental cash flows are relevant when making accept/reject decisions.
Sunk costs are not included in the annual cash flows, but they must be deducted from the PV of the project’s other costs when reaching the accept/reject decision.
A proposed project’s estimated net income as determined by the firm’s accountants, using generally accepted accounting principles (GAAP), is discounted at the WACC, and if the PV of this income exceeds the project’s cost, the project should be accepted.
If a product is competitive with some of the firm’s other products, this should be incorporated into the estimate of the relevant cash flows, but if the new product is complementary to some of the firm’s other products, this will have no effect on the relevant cash flows

Analyze a situation in which both parties entering into a contract could benefit, economically or otherwise, from slightly ambiguous language contained in the contract. Provide specific examples to support your response

in the mid-1990s the federal budget deficit did what