A Large Company Specializing in Bread Baking Has Made Its

question 87

Multiple Choice

A large company specializing in bread baking has made its annual balance sheet available to its investors.Profits were slightly lower than expected this year.Which of the following items does NOT need to be included in this statement in order to fulfill the principle of full disclosure?

• A) The current rise of local micro-bakeries has not affected and probably will not affect the revenue of the company.
• B) The company is contemplating a merger with another major baking company.
• C) Much of the loss of profits can be explained by the sudden rise in the price of wheat during the past year.
• D) A baking start-up company founded by some former executives of the company looks like it will be a major competitor in the upcoming years.
• E) The company and the union for its workers were able to halt a labor strike by negotiating increased health benefits for its workers, causing a slight increase in operating costs.

Identify the factors affecting the supply curve, including natural forces and price controls.

Recognize the role of monopolies, particularly regulated monopolies, and barriers to entry in the economy.

Understand how economic policies like price controls can impact supply and demand, and potentially lead to shortages.

Grasp the relationship between demand, supply, and employment.

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Definitions:

Variability

The measure of how spread out or scattered scores are in a distribution.

Modality

The number of peaks or modes in the distribution of data, used to describe the shape of the data distribution.

Skewed

Describes a distribution of data that is asymmetrical, with a longer tail on one side of the central peak than on the other.