Which of the following is FALSE?
a. Maximizing division profits can sometimes lead to reducing company-wide profits
b. Managers of profit centers are usually given a lot of discretion in their decision making
c. Profit centers usually require the highest degree of attention by corporate headquarters
d. A manager being rewarded on division revenues has the most incentive to make good decisions for his division
QUESTION 2All these factors will shift good X's supply curve, except
a. Bad weather
b. Change in the price of X
c. Changes in the price of raw materials to produce X
d. A tax charged to good X
QUESTION 3Appendix: In regression analysis, the existence of a high degree of intercorrelation among some or all of the explanatory variables in the regression equation constitutes:
a. autocorrelation
b. a simultaneous equation relationship
c. nonlinearities
d. heteroscedasticity
e. multicollinearity
QUESTION 4Which of the following is FALSE?
a. Maximizing division profits always leads to maximizing company-wide profits
b. Managers of profit centers are usually given a lot of discretion in their decision making
c. Profit centers usually largely run themselves
d. A manager being rewarded on division revenues has the most incentive to make good decisions for his division
QUESTION 5Movie theatres decided to increase the price of movie tickets. Holding other factors constant, what happens to the demand for popcorn in the movie theatres?
a. Demand for popcorn shifts to the left because popcorn and movies are substitute goods.
b. Demand for popcorn shifts to the left because popcorn and movies are complementary goods.
c. Demand for popcorn shifts to the right because popcorn and movies are substitute goods.
d. Demand for popcorn shifts to the right because popcorn and movies are complementary goods.
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