Various executive compensation plans

Question

Assignment:

Question 1. Various executive compensation plans have been employed to motivate managers to make decisions that maximize shareholder wealth.

Question 2. Shirking of one's duties is often encountered in team production settings because.

Question 3. Recently, the American Medical Association changed its recommendations on the frequency of pap-smear exams for women. The new frequency recommendation was designed to address the family histories of the patients. The optimal frequency should be where the marginal benefit of an additional pap-test:

Question 4. The Saturn Corporation (once a division of GM) was permanently closed in 2009. What went wrong with Saturn?

Question 5. Economic profit is defined as the difference between revenue and ____.

Question 6. Income tax payments are an example of ____.

Question 7. A change in the level of an economic activity is desirable and should be undertaken as long as the marginal benefits exceed the ____.
Question 8. The standard deviation is appropriate to compare the risk between two investments only if

Question 9. The primary difference(s) between the standard deviation and the coefficient of variation as measures of risk are:

Question 10. The level of an economic activity should be increased to the point where the ____ is zero.

Question 11. The approximate probability of a value occurring that is greater than one standard deviation from the mean is approximately (assuming a normal distribution)

Question 12. Generally, investors expect that projects with high expected net present values also will be projects with

Question 13. When demand elasticity is ____ in absolute value (or ____), an increase in price will result in a(n) ____ in total revenues.

Question 14. Auto dealers slash prices at the end of the model year in response to deficient demand/excess inventory but restaurants facing the same problem slash production because

Question 15. Marginal revenue (MR) is ____ when total revenue is maximized.

Question 16. The factor(s) which cause(s) a movement along the demand curve include(s):

Question 17. Which of the following would tend to make demand INELASTIC?

Question 18. When demand is ____ a percentage change in ____ is exactly offset by the same percentage change in ____ demanded, the net result being a constant total consumer expenditure.

Question 19. An income elasticity (Ey) of 2.0 indicates that for a ____ increase in income, ____ will increase by ____.

Question 20. Even though insignificant explanatory variables can raise the adjusted R2 of a demand function, one should not interpret their effects on the regression when

Question 21. When two or more "independent" variables are highly correlated, then we have:

Question 22. One commonly used test in checking for the presence of autocorrelation when working with time series data is the ____.

Question 23. The estimated slope coefficient (b) of the regression equation (Ln Y = a + b Ln X) measures the ____ change in Y for a one ____ change in X.

Question 24. In regression analysis, the existence of a significant pattern in successive values of the error term constitutes:

Question 25. In which of the following econometric problems do we find Durbin-Watson statistic being far away from 2.0?