投资学第7版Test-Bank答案17

Chapter17MacroeconomicandIndustryAnalysis389MultipleChoiceQuestions1.Atopdownanalysisofafirmstartswith____________.A)therelativevalueofthefirmB)theabsolutevalueofthefirmC)thedomesticeconomyD)theglobaleconomyE)theindustryoutlookAnswer:DDifficulty:Easy2.Anexampleofahighlycyclicalindustryis________.A)theautomobileindustryB)thetobaccoindustryC)thefoodindustryD)AandBE)BandCAnswer:ADifficulty:EasyRationale:Consumerdurables,suchasautomobiles,arehighlycyclicalaspurchasescanbedelayeduntilgoodtimes.Necessities,low-ticketitems,andaddictiveproductsarepurchasedingoodtimesandbad.3.Demand-sideeconomicsisconcernedwith_______.A)governmentspendingandtaxlevelsB)monetarypolicyC)fiscalpolicyD)AandBE)A,B,andCAnswer:EDifficulty:EasyRationale:Demand-sideeconomicsisconcernedwithmonetaryandfiscalpolicy(governmentspendingandtaxing).Chapter17MacroeconomicandIndustryAnalysis3904.Themostwidelyusedmonetarytoolis___________.A)alteringthediscountrateB)alteringthereserverequirementsC)openmarketoperationsD)alteringmarginaltaxratesE)noneoftheaboveAnswer:CDifficulty:EasyRationale:TheFederalReserve'sopenmarketoperationsarethemostwidelyusedandmosteffectivemonetarytoolforinfluencinginterestrates.5.Thereal,orinflation-adjusted,exchangerate,isA)thebalanceoftrade.B)thebudgetdeficit.C)thepurchasingpowerratio.D)unimportanttotheU.Seconomy.E)noneoftheabove.Answer:CDifficulty:EasyRationale:Theratioofonecountry'spurchasingpowertoanother'siscalledthereal,orinflationadjusted,exchangerate,andisanimportantmeasureoftherelativecostsofdomesticversusforeigngoods.6.Thenormalrangeofprice-earningsratiosfortheS&P500IndexisA)between2and10.B)between5and15.C)lessthan8.D)between12and25E)greaterthan20.Answer:DDifficulty:ModerateRationale:Stockpricescommonlytradeatbetween12and25timesearnings.Chapter17MacroeconomicandIndustryAnalysis3917.MonetarypolicyisdeterminedbyA)governmentbudgetdecisions.B)presidentialmandates.C)theboardofGovernorsoftheFederalReserveSystem.D)congressionalactions.E)noneoftheaboveAnswer:CDifficulty:EasyRationale:TheBoardofGovernorsoftheFederalReserveSystemdeterminesmonetarypolicythroughopenmarketoperations,changesinthediscountrateandreserverequirementadjustments.8.Atroughis________.A)atransitionfromanexpansioninthebusinesscycletothestartofacontractionB)atransitionfromacontractioninthebusinesscycletothestartofanexpansionC)adepressionthatlastsmorethanthreeyears.D)onlysomethingusedbyfarmerstofeedpigsandnotaninvestmenttermE)noneoftheaboveAnswer:BDifficulty:EasyRationale:Thetroughoccurswhentheeconomyhashitrockbottominthebusinesscycleandrecoveryisahead.9.Apeakis________.A)atransitionfromanexpansioninthebusinesscycletothestartofacontractionB)atransitionfromacontractioninthebusinesscycletothestartofanexpansionC)adepressionthatlastsmorethanthreeyears.D)onlysomethingusedbyfarmerstofeedpigsandnotaninvestmenttermE)noneoftheaboveAnswer:ADifficulty:EasyRationale:Thepeakoccurswhentheeconomyhashitthetopinthebusinesscycle.Chapter17MacroeconomicandIndustryAnalysis39210.Iftheeconomyisgrowing,firmswithhighoperatingleveragewillexperience__________.A)higherincreasesinprofitsthanfirmswithlowoperatingleverage.B)similarincreasesinprofitsasfirmswithlowoperatingleverage.C)smallerincreasesinprofitsthanfirmswithlowoperatingleverage.D)nochangeinprofits.E)noneoftheabove.Answer:ADifficulty:EasyRationale:Assalesincrease,firmswithhighoperatingleveragespreadthesefixedcostsovermoreunitsandthusincreaseprofits.11.Iftheeconomyisshrinking,firmswithhighoperatingleveragewillexperience__________.A)higherdecreasesinprofitsthanfirmswithlowoperatingleverage.B)similardecreasesinprofitsasfirmswithlowoperatingleverage.C)smallerdecreasesinprofitsthanfirmswithlowoperatingleverage.D)nochangeinprofits.E)noneoftheabove.Answer:ADifficulty:EasyRationale:Assalesdecrease,firmswithhighoperatingleveragespreadthesefixedcostsoverfewerunitsandthusdecreaseprofits.12.Iftheeconomyisgrowing,firmswithlowoperatingleveragewillexperience__________.A)higherincreasesinprofitsthanfirmswithhighoperatingleverage.B)similarincreasesinprofitsasfirmswithhighoperatingleverage.C)smallerincreasesinprofitsthanfirmswithhighoperatingleverage.D)nochangeinprofits.E)noneoftheabove.Answer:CDifficulty:EasyRationale:Assalesincrease,firmswithhighoperatingleveragespreadthesefixedcostsovermoreunitsandthusincreaseprofits.Chapter17MacroeconomicandIndustryAnalysis39313.Iftheeconomyisshrinking,firmswithlowoperatingleveragewillexperience__________.A)higherdecreasesinprofitsthanfirmswithhighoperatingleverage.B)similardecreasesinprofitsasfirmswithhighoperatingleverage.C)smallerdecreasesinprofitsthanfirmswithhighoperatingleverage.D)nochangeinprofits.E)noneoftheabove.Answer:CDifficulty:EasyRationale:Assalesdecrease,firmswithhighoperatingleveragespreadthesefixedcostsoverfewerunitsandthusdecreaseprofits.14.GDPrefersto_________.A)theamountofpersonaldisposableincomeintheeconomy.B)thedifferencebetweengovernmentspendingandgovernmentrevenues.C)thetotalmanufacturingoutputintheeconomy.D)thetotalproductionofgoodsandservicesintheeconomyE)noneoftheaboveAnswer:DDifficu