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ETS MFT BUSINESS EXAM EXPECTED NEWEST VERSION QUESTION AND CORRECT ANSWERS.
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ETS MFT BUSINESS EXAM EXPECTED NEWEST VERSION QUESTION AND CORRECT ANSWERS.
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ETS MFT BUSINESS EXAM EXPECTED NEWESTVERSION 2024-2025 250 QUESTION AND
CORRECT ANSWERS.
Sue and Neal are twins. Sue invests $5,000 at 7 percent when she is 25
years old. Neal invests $5,000 at 7 percent when he is 30 years old. Both
investments compound interest annually. Both Sue and Neal retire at
age 60. Which one of the following statements is correct assuming that
neither Sue nor Neal has withdrawn any money from their accounts?
a) Sue will have less money when she retires than Neal.
b) Neal will earn more interest on interest than Sue.
c) Neal will earn more compound interest than Sue.
d) If both Sue and Neal wait to age 70 to retire, then they will have
equal amounts of savings.
e) Sue will have more money than Neal as long as they retire at the
same time - ANSWER-E
,In general, the __________ difficult it is for an organization to enter an
industry as a new competitor, the __________ are the barriers to entry
to this industry
a) Less; lower
b) More; lower
c) More; higher
d) Less; higher - ANSWER-C
An open access good (or common property good), such as a fishery:
a) Is rival but not excludable
b) Is both rival and excludable
c) Is neither rival nor excludable
d) Is not rival but is excludable - ANSWER-A
,A differentiation strategy enables a business to address the five
competitive forces by
a) lessening competitive rivalry by distinguishing itself
b) having brand-loyal customers become more sensitive to prices
c) increasing economies of scale
d) serving a broader market segment - ANSWER-A
Only one of the following statements is false at the long-run equilibrium
for a firm in a monopolistically competitive industry. Which one is false?
a) Price equals Average Total Cost, like a competitive firm
b) Price exceeds marginal cost, like a monopolist
c) Firms make zero economic profit, like a competitive firm
d) Firms produce at the bottom of the ATC curve, like a competitive firm
- ANSWER-D
, Dreamland Pillow Company sells the "Old Softy" model for $20 each.
One pillow requires two pounds of raw material and one hour of direct
labor to manufacture. Raw material costs $3 per pound and direct
production labor is paid $4 per hour. Fixed supervisory costs are $2,000
per month and Dreamland rents its factory on a five-year lease for
$4,000 per month. All costs are considered costs of production.
Another firm has offered to produce "Old Softy" and sell them to
Dreamland for $12 each. Dreamland cannot avoid the factory lease
payments, but can avoid all labor costs if it does not produce these
pillows. Under these conditions, how many "Old Softy" pillows must
Dreamland sell to earn monthly gross profits of $1,000?
a) 417
b) 500
c) 625
d) 875. - ANSWER-C
The correct answer is 625 Pillows Gross Profit = Net Sales - Cost of
Goods Sold
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