BEC CPA Exam Review Questions and Answers 2024

BEC CPA EXAM REVIEW QUESTIONS AND ANSWERS 2024 Demand Curve Shift Upward (direct relationship-positive shift) The price of substitute goods, expectations of price changes, income for normal goods, and extent of market Demand Curve Shift Downward (inverse relationship-neg. shift) The price of complement good, income for inferior goods, and consumer boycotts SWOT analysis strengths, weaknesses, opportunities, threats Three common measures of price inflation: 1. The Consumer Price Index (CP) 2. The Producer Price Index (PPI) 3. The GDP Deflator Okun's law Provides a general rule of thumb showing how economic growth rates faster than average often result in reductions in unemployment Product differentiation strategies seek to make the demand for a firm's products more inelastic. Transfer pricing is the process for setting prices that are charged for the transfer of goods or services between related parties such as departments of a large entity. Full employment implies that there frictional and structural unemployment, but not cyclical unemployment. The consumer price index (CPI) is a common measure of inflation. It compares the price of goods and services in a base year to the price of the same goods and services at a later year. The CPI is commonly used to convert figures not readily comparable across years into figures that are more comparable. The phases of the business cycle are expansion, peak, contraction (ie, recession), and trough. Peaks are usually characterized by a lack of available labor and capital, which results in a deceleration of growth. Output is at maximum and unemployment is as low as possible—or at the "natural" rate.