Demand Curve Shift Upward (direct relationship-positive shift) correct answers The price of subsitute goods, expectations of price changes, income for normal goods, and extent of market
Demand Curve Shift Downward (inverse relationship-neg. shift) correct answers The price of complement good, in...
demand curve shift upward direct relationship positive shift correct answers the price of subsitute goods
expectations of price changes
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BEC CPA Exam (correct answers)
Demand Curve Shift Upward (direct relationship-positive shift) correct answers The
price of subsitute goods, expectations of price changes, income for normal goods, and
extent of market
Demand Curve Shift Downward (inverse relationship-neg. shift) correct answers The
price of complement good, income for inferior goods, and consumer boycotts
Three common measures of price inflation: correct answers 1. The Consumer Price
Index (CP)
2. The Producer Price Index (PPI)
3. The GDP Deflator
Okun's law correct answers Provides a general rule of thumb showing how economic
growth rates faster than average often result in reductions in unemployment
Product differentiation strategies correct answers seek to make the demand for a firm's
products more inelastic.
Transfer pricing correct answers is the process for setting prices that are charged for
the transfer of goods or services between related parties such as departments of a large
entity.
Full employment implies that correct answers there frictional and structural
unemployment, but not cyclical unemployment.
The consumer price index (CPI) correct answers is a common measure of inflation. It
compares the price of goods and services in a base year to the price of the same goods
and services at a later year. The CPI is commonly used to convert figures not readily
comparable across years into figures that are more comparable.
The phases of the business cycle are correct answers expansion, peak, contraction (ie,
recession), and trough.
Peaks are correct answers usually characterized by a lack of available labor and capital,
which results in a deceleration of growth. Output is at maximum and unemployment is
as low as possible—or at the "natural" rate.
Tight labor markets and lack of excess capacity often result in correct answers the
bidding up of wages and prices, leading to an acceleration of inflation.
, A change in account balances will always be measured as correct answers (the current
balance - the prior balance), with a positive result indicating an increase and a negative
result a decrease.
Transportation costs would exist correct answers even in the absence of government.
There are three common measures of price inflation: correct answers consumer price
index, producer price index and GDP deflator.
Deflation correct answers a decrease in the general level of prices and inflation rate is
below zero
Collusive pricing correct answers results when competing suppliers agree that they will
not compete on the basis of price, setting a uniform price to be charged by all suppliers
(conspire). This enables the suppliers to establish higher than market prices.
Price floor correct answers a minimum price for a good or service
price ceiling correct answers a maximum price that can be legally charged for a good or
service
Structural unemployment correct answers represents a mismatch between the skills of
workers and the needs of the labor market. This usually occurs due to technological
advances that change or eliminate the need for the specific skills many workers
possess.
A significant decline in the U.S. dollar tends to correct answers hurt U.S. importers and
benefit U.S. exporters, while making foreign goods more expensive for U.S. consumers.
Stagflation is defined as correct answers simultaneous unemployment and inflation
Quantitative easing correct answers involves the Fed buying securities to add liquidity to
the economy, when short-term interest rates are already close to zero.
Globalization correct answers has been ongoing for many decades. It has many
aspects, including more savers having more internationally diversified portfolios (i.e.,
reduced home bias), more firms operating internationally, and increased international
trade occurring within companies.
Impose countervailing duties legally under WTO rules: correct answers the other
country must have disobeyed a WTO panel that told it to correct a problem.
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