Frankie is deciding between two jobs that provide equal pay. He compares the health care benefits provided by both jobs to help him make a decision. One job offers a flexible spending account, while the other job offers him managed care. Which statement will help Frankie make a decision?

A) With managed care, the insurer makes all decisions about health care so Frankie has no control.
B) Money in flexible spending accounts is not taxed, so employees get more take-home pay.
C) The money in the flexible spending accounts must meet IRS requirements.
D) At the end of each year, money remaining in a flexible spending account reverts to the employer.
E) Contributions to a flexible spending account may not exceed $5,000 per year.

All derivatives must be carried on the balance sheet at historical cost.

The best rationale for a merger is that the value of the firms combined is:

A) at least equal to the sum of their separate values.
B) greater than the sum of their separate values.
C) less than the sum of their separate values.
D) None of the above

The norming stage of the team life cycle is characterized by a period of high emotionality, the identification of team boundaries and team roles, and the ability to handle membership disagreements in creative ways.

When constructing a production possibilities frontier, which of the following assumptions is not made?

A) The economy produces only two goods or two types of goods.
B) Firms produce goods using factors of production.
C) Technology does not change.
D) The quantities of the factors of production that are available are increasing over the relevant time period.

In the investor's choice problem, the slope of the budget line equals:

A) the difference between the expected return on the risky asset and return on the risk-free asset, divided by the standard deviation of the risky asset.
B) the difference between the expected return on the risky asset and return on the risk-free asset, divided by the standard deviation of the portfolio.
C) the difference between the expected return on the risky asset and the return on the entire portfolio., divided by the standard deviation of the portfolio.
D) the rate at which risky assets are traded for risk-free assets.