Alfonso Has Noticed That Increases in Unemployment Insurance Claims Are

question 40

Multiple Choice

Alfonso has noticed that increases in unemployment insurance claims are associated with recessions,and therefore he advocates limits on unemployment insurance so as to prevent recessions.Mary has noticed that most drug addicts once attended schools,and therefore she advocates getting rid of schools so as to prevent drug addiction.

• A)The reasoning of both Alfonso and Mary suffers from the omitted variable problem.
• B)The reasoning of both Alfonso and Mary suffers from the reverse causality problem.
• C)Alfonso's reasoning suffers from the reverse causality problem,and Mary's reasoning suffers from the omitted variable problem.
• D)Mary's reasoning suffers from the reverse causality problem,and Alfonso's reasoning suffers from the omitted variable problem.

Identify the components of ROI, including the profit margin and investment turnover, and understand their implications.

Recognize the concept of residual income as a performance measure and how it is calculated.

Understand the role of divisional managers in decision-making concerning investments and fixed assets.

Comprehend the impact of divisional performance measures on managerial motivation and investment decisions.

---

Definitions:

Life Expectancy

Life expectancy is the statistical measure of the average time an organism is expected to live, based on factors such as the year of their birth, current age, and demographic factors.

Literacy Rates

The percentage of people who are able to read and write within a specific population.

Unemployment

The condition of being without a paid job despite actively looking for work, often measured by the unemployment rate which is the percentage of the labor force that is jobless.

Incomes

The income generated, particularly through regular payments, from employment or investment returns.