Using the monopoly power in one area to compel costumers to buy goods in another area a) is a violation of the Sherman Anti-Trust Act. b) is legal, but bad business practice. c) is illegal but would be bad business practice anyway. d) is legal and a recommended strategy.
> 1. Which projects would you recommend Handstar pursue based on the NPV approach? 2. Assume the founders weigh a project’s NPV twice as much as both obtaining/retaining a leadership position and use of the Internet. Use the weighted factor scoring method
> 1. Identify as well as you can the three iron triangle constraints for this project: cost, time, and scope. 2. Identify the expected benefits of this project for Friendly Medical Center. 3. Comment on the strategic initiatives resulting from the Board’s
> 1. What information does Alison need to determine the probable impact of Kelsey’s proposed project on the other projects in the department? 2. Should her findings affect her decision about Kelsey’s project? How?
> How would you recommend they reach a consensus on the action plan for the project?
> Given the following information, calculate the critical ratios and indicate which activities are on target and which need to be investigated. Comment on the situation for each of the activities.
> Can you think of any other desirable characteristics for team members than those listed in Section 2.6?
> A project has just completed the 87th item in its plan. It was scheduled to have spent $168,000 at this point in the plan, but has actually spent only $156,000. The foreman estimates that the value of the work actually fi nished is about $162,000. What a
> At week 24 of a project to shoot a television commercial, the project manager is worried about her budget since costs have risen to $7,500. Is there a cost overage? If so, how much is it? Is the schedule ahead or -behind? Overall, does the project appear
> A project in its 26th week has an actual cost of $270,000. It was scheduled to have spent $261,000. For the work performed to date, the budgeted value is $272,000. What are the cost and schedule variances for the project? What are the SPI and CPI?
> Given the network for an HR training project with normal times and crash times (in parentheses), find the cost duration history. Assume indirect costs for facilities and equipment are $100 per day.
> The network for shooting a TV commercial as shown in the table has a fixed cost of $90 per day, but money can be saved by shortening the project duration. Find the least-cost schedule.
> Consider the project network below. Suppose the duration of both activities A and D can be reduced to 1 day, at a cost of $15 per day of reduction. Also, activities E, G, and H can be reduced in duration by 1 day, at a cost of $25 per day of reduction. W
> Given the project shown in Figure 5-10 of Chapter 5 and the fact that the facility used by activities c and d is scarce, which activity would benefit from each of the rules?
> What are the potential ramifications of not utilizing integration management techniques or parallel tasking while planning and implementing a project?
> Given the following AOA network, what is the first activity to be given extra resource?
> After entering the resource information, are there any problems with the resources being overloaded? If so, level the resources so that the resources are not overloaded. What impact does leveling the resources have on the expected project completion ti
> Given the following information regarding a project involving an initial public offering (IPO):
> Referring to the previous two questions, modify your simulation model to develop distributions for the slack time of each path. What do these distributions tell you?
> Resolve the previous exercise using computer simulation and compare your answers. Explain any differences you observe. Which methodology do you have more confidence in and why?
> Given an auditing project with the following activities: Activity Std. Dev. Critical Duration a. Add b. Balance c. Count d. Deduct e. Edit f. Finance g. Group h. Hold 2 Yes 2 1 3 Yes 4 3 2 1 Yes 1 2 6 2 Yes 4 2 Yes
> In the following table, task durations are given in weeks. The estimates were made at the 95 percent level (see Section 5.2, Calculating Probabilistic Activity Times subsection).
> Given the information in the following table: Activity Duration Predecessor None 4 6 a b a 4 a 2 4 5 e f b, d 3 f, g e, h h 4 i 2
> Refer to Table 5-4 and Figure 5-14. Recalculate the variance for each activity on the assumption that the optimistic and pessimistic estimates were made with a 90 percent probability. Again, recalculate the likelihood that the critical path will be finis
> Refer to Table 5-4 and Figure 5-14. Recalculate the variance for each activity on the assumption that the optimistic and pessimistic estimates were made with a 95 percent probability. Recalculate the probability that the critical path will be completed i
> The following activities were listed during a brainstorming session on product development. Find the appropriate predecessor-successor relationships and then construct an AON network to reflect the project using the activity duration times given in the i
> The project referred to in Exercise 5.11 has been partially completed. Task a required 4 weeks, task b 9 weeks, task c 4 weeks, and task d 5 weeks. Update the simulation model you developed for Exercise 5.11 and calculate the probability that the project
> Given the project in Exercise 5.6, simulate the completion of the project 1000 times, assuming that the activity times follow a normal distribution and that the time estimates are made at the 95 percent level.
> Given the information in the following table, draw the AOA network. Using the same information, enter the data into MSP assuming a 7-day workweek. (To change the calendar in MSP from its 5-day week default click “Help,” type “calendar change,” and follow
> Refer to the network in Figure 5-14. What is the probability that path a-b-c-f will interfere with the promised project completion of 50 days? Recall that the critical path, a-b-d-g-h, had a probability of .86 for a 50-day completion. What is the probabi
> Given the project in Exercise 5.11, simulate the completion of the project 1000 times, assuming that the activity times are at the 99 + level and follow a triangular distribution.
> Information about the cash flows for a four-year financial project are listed in the following table. The cash flows are assumed to follow a triangular distribution. The cost of implementing the project is expected to be between $60,000 and $70,000, with
> What would happen to the NPV of the above project if the inflation rate was expected to be 4 percent in each of the next 4 years? You may use either Excel® or CB to determine your answer.
> A four-year financial project is forecast to have net cash inflows of $20,000; $25,000; $30,000; and $50,000 in the next 4 years. It will cost $75,000 to implement the project, payable at the beginning of the project. If the required rate of return is 0.
> The IT unit of a company has been asked to prepare a budget for a special software package project. The group has considerable experience with similar tasks and submits the costs in the following table. The group also thinks that the distribution of the
> A light manufacturing firm has set up a project for developing a new machine for one of its production lines. The most likely estimated cost of the project itself is $1,000,000, but the most optimistic estimate is $900,000 while the pessimists predict a
> 1. Calculate the schedule variance and cost variance for the Bullwhip project. 2. Does Jimmy’s point about the material costs have merit? If so, does this have any implications for the way the earned valued is calculated at Peak? 3. Who is right about th
> 1. What is the cost of completing this project if no overtime is used? How long will it take to complete the project? 2. What is the shortest amount of time in which the project can be completed? What is the cost of completing the project in the shortes
> If the equilibrium rent is _____ the controlled level, then rent control laws are ______. a) above; necessary b) above; irrelevant c) below; necessary d) below; irrelevant
> The distinct feature of the marginal cost curve in the analysis of venues is that it is a) a vertical line. b) a horizontal line. c) a check-shaped curve. d) a backward L.
> The argument that the minimum wage is worse than the Earned Income Tax Credit is based on the idea that a) the people who earn the minimum wage are really poor. b) the minimum wage applies to all workers, not just the working poor. c) the Earned Incom
> A price support mechanism a) can only regulate supply. b) can only regulate demand. c) must involve government purchases. d) can involve government manipulation of the supply or demand of the good.
> Wealth inequality is _____ related to the ratio of mean to median wealth. a) positively b) negatively c) not
> The method of detecting sex discrimination most likely to maximize it would be to use a) simple differences in income between men and women. b) simple differences in full-time wages for men and women. c) regression techniques. d) auditing technique
> The method of detecting sex discrimination most likely to minimize it would be to use a) simple differences in income between men and women. b) simple differences in full-time wages for men and women. c) regression techniques. d) auditing techniques
> Monopoly creates prices that are _____ which would exist under perfect competition. a) lower than that b) equal to that c) greater than that d) more volatile than that
> Economists call the reduction in consumer confidence that resulted from the September 11th attacks an _____ shock which leads to the ________. a) aggregate demand, aggregate demand curve shifting left b) aggregate demand, aggregate demand curve shiftin
> Which advantage does a typical developing country have in attempting to draw foreign investment? a) Very low wages b) Poor education c) Easy profit repatriation d) Independent central banks
> Which one of the following communities would likely see the greatest economic impact from a new casino? a) Plainfield, IN (just outside Indianapolis) b) Gary, IN (outside Chicago and already has one) c) Terre Haute, IN (Indianapolis is 70 miles away;
> We can measure how much someone values the personal touch of a small grocery store by using the amount extra they pay at that store even when there is a Walmart in town. Economists call that a) revealed demand. b) revealed preference. c) parsing the p
> Under perfect competition marginal resource cost ________ supply, under monopsony marginal resource cost _______ supply. a) equals; equals b) equals; is greater than c) equals; is less than d) is greater than; is less than
> If you invested in 20 different companies and chose those companies at random, you would be counting on the _______ market hypothesis and its implication that you would do as well as you would with any other investment strategy. a) random b) complete c
> The typical problem for generating parity in sports leagues is that a) there is no mechanism for bringing in new talent in a way that helps the bad teams. b) there is no means by which players on one team can move to another. c) with no salary cap and
> When a group of competitors joins together to form a monopoly, they are forming a a) cartel. b) coalition. c) union. d) trust.
> The alternative minimum tax has the effect of limiting a) income. b) taxable income. c) deductions. d) exemptions.
> The average index of monthly earnings is indexed a) for wage inflation. b) for consumer price inflation. c) for producer price inflation. d) via a combination of wage and price inflation.
> Though the high-quality preschool experience is a private benefit for the children and their parents, the economic justification for Head Start is based on a) external costs. b) its low total cost. c) the increase in reading ability of participants go
> In a simple 300 million-person world of all four-person families, if the poverty line is $12,500 and half of the 10 million families (with 40 million poor people) earn $10,000 and the other half earn $7,500, then the poverty rate is a) 3.33% (10 million
> The reason the ECB did not want the Greeks to exit the euro was that a) Greece was viewed as a valuable member in temporary distress. b) Greece was viewed as so unimportant that it did not want the perception that countries were leaving for any reason
> The argument that spending more money on teachers has little impact on educational outcomes in K–12 is a) inconsistent with any economic model. b) consistent with the upward-sloping nature of a production function. c) consistent with the downward-slo
> The argument that spending more money on teachers has little impact on educational outcomes in K–12 is a) inconsistent with any economic model. b) consistent with the upward-sloping nature of a production function. c) consistent with the downward-slo
> Rent control is an example of a _________ a) price ceiling. b) price floor. c) price irrelevancy. d) price equalization.
> The optimal venue for an event is one where a) the number of seats exceeds the number where marginal cost equals marginal revenue. b) the number of seats is less than number where marginal cost equals marginal revenue. c) the number of seats is exactl
> The last time the minimum wage alone was sufficient to keep a family of three above the poverty line was a) 1979. b) 1985. c) 1990. d) 1998.
> Farm price supports are typically for a) basic commodities like raw milk and grain. b) fruits and vegetables. c) refined products like flour. d) manufactured products like breakfast cereals.
> Income inequality as conventionally measured is ____ when you ignore the decreases in the capital gains tax rate. a) overstated b) understated c) property stated
> One of the concerns about monopolies is that they a) reduce the motivation to innovate. b) reduce the motivation to make a profit. c) hire people at an excessive level. d) waste resources in pursuit of the next invention.
> The destruction of the World Trade Center and damage to the Pentagon and the accompanying work to rebuild and repair led to _____ to the insurance companies and _____ in GDP. gains; gains losses; losses losses; gains gains; losses
> Economists generally believe that a new casino in a city that already has them would likely have _________ economic impact. a) an enormously negative b) a modestly negative c) an enormously positive d) a modestly positive
> An increase in the expected inflation rate in one country will a) strengthen its currency. b) weaken its currency. c) have no impact on the exchange rate between its currency and other currencies.
> The impact of a new Walmart on a community’s workers is a) only positive in that new jobs are created. b) only negative because better-paying jobs at competitors are lost. c) positive and negative because new jobs are created, but they often displac
> When there are many employers in a city and one union, the model that economists use is one for a) monopoly. b) monopsony. c) perfect competition. d) monopolistic competition.
> A stock index is a) essentially the weighted sum of stock prices. b) the simple sum of stock prices. c) the geometric average of stock prices. d) the consensus view of professional economists.
> Most baseball franchises have _____ over the years while the sale price of the typical team has ______. a) made a profit; fallen b) lost money; fallen c) made a profit; risen d) lost money; risen
> The heaviest concentration of proven oil reserves is found in a) Alaska. b) the North Sea. c) the Persian Gulf. d) Texas.
> Because there are _______, adjusted gross income is always ______ taxable income. a) deductions and exemptions; less than b) deductions and exemptions; greater than c) credits; greater than d) credits; less than
> One of the reasons a government-run annuity system such as Social Security may be better for society than simply relying on private savings is that a) no one would save for themselves. b) people, being overly risk averse, will save too much. c) people
> If Head Start were a good long-run investment from a strictly economic perspective, for current children enrolled in the program it would a) make them happier. b) help their parents with subsidized day care/preschool. c) increase the likelihood of fut
> In a simple 300 million-person world of all four-person families, if the poverty line is $12,500 and half of the 10 million families (with 40 million poor people) earn $10,000 and the other half earn $7,500, then the poverty gap is a) $125 billion (= 10
> The fact that education benefits not just the person being educated but society as a while suggests that there is a a) positive externality. b) negative externality. c) congestion. d) monopoly.
> Economists are concerned about nontariff (regulatory) barriers when they are used to prevent imports when a good a) is produced via questionable means (e.g. banning milk produced from cows injected with bovine growth hormone). b) is produced via more
> The fact that education benefits not just the person being educated but society as a while suggests that there is a a) positive externality. b) negative externality. c) congestion. d) monopoly.
> In the long run, rent control has ________ impact because, over time, supply and demand become ______ elastic. a) an increasing; more b) a decreasing; more c) an increasing; less d) a decreasing; less
> Economists ______ the activities of ticket brokers and scalpers. a) draw no distinction between b) separately model c) draw a stark contrast between d) ignore
> In order for the minimum wage to reach its 1968 high in real terms (1999 dollars), it would have to rise to approximately ___ per hour. a) $8 b) $9 c) $10 d) $11
> Price supports in the United States have a) always relied on the government paying farmers to set aside land. b) always relied on the government buying excess crops. c) always relied on forbidding production above certain levels. d) utilized a wide v
> Income inequality as conventionally measured is ____ when you ignore the fact that a higher percentage of the population is filing tax forms. a) overstated b) understated c) property stated
> The earnings of African Americans relative to whites has a) increased from 40 percent in the 1920s to 90 percent today. b) increased from 50 percent in the 1950s to around 60 percent in the 1970s, remaining in that area since. c) remained constant sin
> Antitrust law is designed to limit the impact of a) monopoly. b) oligopoly. c) monopolistic competition. d) perfect competition.
> The economic rationale for farm price supports is generally a) weak, but relies on price variability. b) weak, but relies on the unavailability of crop insurance. c) strong, and relies on the fact that prices are too high. d) strong, and relies on t
> 1. The fundamental value of a share of stock is based on the present value of expected future a) dividends. b) revenues. c) profits. d) costs.
> Deficits cannot occur in a) defined benefit plans. b) defined contribution plans. c) entitlement budgets. d) state and local budgets.
> The tax brackets have higher tax rates for more taxable income. This makes the federal income tax a) proportional. b) regressive. c) progressive. d) integrative.
> 1. Between 1998 and 2007 the real minimum wage a) rose rapidly. b) rose slowly. c) fell steadily. d) fell rapidly.
> This chapter suggests that many economists generally a) accept the notion that a human life is worth the value of the chemicals that can be extracted from it. b) argue that a human life is worth the sum of the person’s future income. c) argue that the
> The argument that casinos have little economic impact on a community is based on the notion of a) supply. b) demand. c) opportunity cost. d) local substitution.
> 1. The impact of a new Walmart on a community’s consumers is a) significantly positive for those that get lower prices b) somewhat negative for those that prefer a personal touch (if stores offering it close). c) substantially negative in all aspects
> When there is only one employer in a city, the model that economists use is one for a) monopoly. b) monopsony. c) perfect competition. d) monopolistic competition.
> The value of a sports franchise to a city’s economy depends greatly on a) the sale of memorabilia to citizens. b) the degree to which non-ticket-based sales increase. c) the degree to which restaurant revenues rise. d) the degree to which noncitizens
> In order to compare the price of gasoline in the 1970s with the price in any other year, you have to adjust for a) the availability of oil. b) the price of oil. c) overall inflation. d) unemployment.
> Social Security’s revenue emanates from taxes on a) all income. b) payrolls. c) capital. d) estates.
