Q&A Hero

Q: The connection across biological, cognitive, and socioemotional processes is most obvious in the two rapidly emerging fields of: A. developmental cognitive neuroscience and developmental social neuroscience. B. developmental biological neuroscience and developmental social neuroscience. C. developmental socioemotional pharmacology and developmental biological pharmacology. D.

Q: _____ processes involve changes in the individual's relationships with other people, changes in emotions, and changes in personality. A. Cognitive B. Biological C. Socioemotional D.

Q: _____ processes refer to changes in the individual's thought, intelligence, and language. A. Cognitive B. Biological C. Socioemotional D.

Q: Changes in motor skills, nutrition, exercise, the hormonal changes of puberty, and cardiovascular decline are all examples of _____ processes that affect development. A. cognitive B. biological C. socioemotional D.

Q: Two concepts that help provide a framework for describing and understanding an individual's development are: A. developmental attributes and behavior. B. developmental characteristics and traits. C. developmental challenges and opportunities. D.

Q: Compared with earlier decades, U.S. adults today are: A. more likely to be married. B. more likely to be childless. C. less likely to be living alone. D.

Q: Going by current trends, 86-year-old Matilda is likely to be living: A. with a spouse. B. with children. C. by herself. D.

Q: _____ is(are) a national government's course of action designed to promote the welfare of its citizens. A. Social policy B. Generational policy C. Cultural legislation D.

Q: Socioeconomic status (SES) refers to: A. the behavior patterns, beliefs, and all other products of a particular group of people that are passed on from generation to generation. B. a person's position within society based on occupational, educational, and economic characteristics. C. the degree to which development is similar or universal across cultures. D.

Q: Dr. Wilman is researching the place women occupy in families in Japan and the U.S. Dr. Wilman is conducting a(n) _____ study. A. longitudinal B. ethnocentric C. cross-cultural D.

Q: _____ encompasses the behavior patterns, beliefs, and all other products of a particular group of people that are passed on from generation to generation. A. Culture B. Genotype C. Phenotype D.

Q: Agatha is 83 years old. According to Baltes and his colleagues, _____ and _____ in her capacities will take center stage. A. growth; maintenance B. maintenance; regulation of loss C. regulation of loss; augmentation D.

Q: Keith has won the lottery and now has more money than he ever thought. This incident will likely affect Keith's development and is an example of a: A. normative history-graded influence. B. nonnormative life event. C. nonnormative history-graded influence. D.

Q: Nonnormative life events: A. do not happen to all people. B. happen to younger children, but not to older adults. C. are common to people of a particular generation. D.

Q: When she was a child, Anna's home was wrecked by a tornado and her neighbor was killed. More than 30 years later, she is still terrified of storms. This is an example of how a ____ event can influence a person's development.A.normative age-gradedB.normative generationalC.nonnormative lifeD.normative history-graded

Q: The cultural makeup of the U.S. population has changed over the past few years due to immigration and other factors. Such long-term changes in the genetic and cultural makeup of a population are part of:A.nonnormative multidirectional change.B.normative historical change.C.nonnormative life events.D.nonnormative demographic change.

Q: Influences that generally affect a generation (for example, the effect of the Vietnam war on the baby boomers) are considered _____ influences.A.nonnormative multidirectionalB.normative age-gradedC.nonnormative age-gradedD.normative history-graded

Q: By age 51, most women enter menopause. This is an example of how a biological process can exert a _____ influence on development.A.normative history-gradedB.nonnormative multidirectionalC.normative age-gradedD.nonnormative age-graded

Q: _____ include biological processes such as puberty and menopause. They also include sociocultural, environmental processes such as beginning formal education and retirement.A.Normative age-graded influencesB.Normative history-graded influencesC.Normative life eventsD.Nonnormative life events

Q: "Individuals are changing beings in a changing world". Which characteristic of development is reflected in this statement?A.Development is multidisciplinaryB.Development is contextualC.Development is multidimensionalD.Development is multidirectional

Q: Psychologists, sociologists, anthropologists, neuroscientists, and medical researchers all share an interest in unlocking the mysteries of development through the life span. This indicates how development is:A.multidirectional.B.plastic.C.multidisciplinary.D.multidimensional.

Q: "You can't teach an old dog new tricks". This old saying refutes Paul Baltes' life-span perspective that views development as being:A.plastic.B.multidisciplinary.C.lifelong.D.contextual.

Q: Tzu-Chiang is 55 years old and is currently enrolled in a college algebra course. He is pleasantly surprised that he is performing well in the course despite not taking a formal math class for over 30 years. Researchers would consider this an instance that illustrates how development is:A.plastic.B.multidisciplinary.C.lifelong.D.contextual.

Q: _____ means the capacity for change.A.ElasticityB.PlasticityC.ContextualityD.Tenacity

Q: Many individuals become wiser as they age, but their performance on tasks that require speed in processing information starts to decline. This illustrates how throughout life, some dimensions or components of a dimension expand and others shrink, or how development is:A.plastic.B.contextual.C.multidisciplinary.D.multidirectional.

Q: Dr. Tepper-Harmon believes that life-span development cannot be studied without considering biological, socioemotional, and cognitive dimensions. Dr. Tepper-Harmon believes that development is:A.lifelong.B.contextual.C.multidimensional.D.plastic.

Q: The idea that no age period dominates development highlights the life-span perspective that development is:A.plastic.B.contextual.C.multidimensional.D.lifelong.

Q: If you subscribe to Paul Baltes' perspective of life-span development, which of the following statements would you NOT agree with?A.Development is lifelongB.Development is unidirectionalC.Development is plasticD.Development is contextual

Q: The life expectancy in the United States is currently:A.60 years.B.78 years.C.85 years.D.53 years.

Q: Life expectancy in the United States has increased by _____ years during the twentieth century.A.20B.10C.30D.50

Q: The maximum life span of humans:A.has increased over time.B.has not changed since the beginning of recorded history.C.has matched their life expectancy in recent times.D.is about 65 years as the first decade of the twenty-first century draws to a close.

Q: On your first day of class, Professor Red-Elk claims that for too long we have focused on the development of young children, especially infants. She argues that the development of adults and elderly people is just as important. This professor is articulating a(n) _____ approach.A.evolutionaryB.constructivistC.normativeD.life-span

Q: Two developmental psychologists are having a conversation. One believes in the traditional approach of developmental change, whereas the other believes in the life-span approach. The two are most likely differ on:A.whether developmental change starts at birth or at conception.B.whether the tabula rasa or the innate goodness positions were correct.C.whether most developmental change occurs from birth to adolescence or throughout adulthood as well as childhood.D.whether the earlier theorists, such as Freud and Jung, were correct or whether the later theorists such as Piaget and Skinner were correct about developmental change.

Q: When taking his psychology class, Professor Sharma emphasizes that developmental change occurs throughout adulthood as well as childhood. Professor Sharma is taking a(n) _____ approach to developmental change.A.life-spanB.evolutionaryC.normativeD.constructivist

Q: The _____ approach to the study of development emphasizes extensive change from birth to adolescence, especially during infancy, little or no change in adulthood, and decline in old age.A.prescriptiveB.constructivistC.traditionalD. evolutionary

Q: Development can be defined as the pattern of movement or change that:A. begins at childhood and continues until adulthood.B. begins at conception and continues until adulthood.C. begins at birth and continues through the human life span.D. begins at conception and continues through the human life span.

Q: One problem with ratio analysis is that relationships can be manipulated. For example, we know that if our current ratio is less than 1.0, then using some of our cash to pay off some of our current liabilities would cause the current ratio to increase and thus make the firm look stronger. a. True b. False

Q: One problem with ratio analysis is that relationships can sometimes be manipulated. For example, if our current ratio is greater than 1.5, then borrowing on a short-term basis and using the funds to build up our cash account would cause the current ratio to INCREASE. a. True b. False

Q: A firm's ROE is equal to 9% and its ROA is equal to 6%. The firm finances only with short-term debt, long-term debt, and common equity, so assets equal total invested capital. The firm's total debt to total capital ratio must be 50%. a. True b. False

Q: If a firm's ROE is equal to 9% and its ROA is equal to 6%, its equity multiplier must be 1.5. a. True b. False

Q: Suppose Firms A and B have the same amount of assets, total assets are equal to total invested capital, pay the same interest rate on their debt, have the same basic earning power (BEP), finance with only debt and common equity, and have the same tax rate. However, Firm A has a higher debt to capital ratio. If BEP is greater than the interest rate on debt, Firm A will have a higher ROE as a result of its higher debt ratio. a. True b. False

Q: Suppose a firm wants to maintain a specific TIE ratio. It knows the amount of its debt, the interest rate on that debt, the applicable tax rate, and its operating costs. With this information, the firm can calculate the amount of sales required to achieve its target TIE ratio. a. True b. False

Q: Firms A and B have the same current ratio, 0.75, the same amount of sales, and the same amount of current liabilities. However, Firm A has a higher inventory turnover ratio than B. Therefore, we can conclude that A's quick ratio must be smaller than B's. a. True b. False

Q: Determining whether a firm's financial position is improving or deteriorating requires analyzing more than the ratios for a given year. Trend analysis is one method of examining changes in a firm's performance over time. a. True b. False

Q: Klein Cosmetics has a profit margin of 5.0%, a total assets turnover ratio of 1.5 times, no debt and therefore an equity multiplier of 1.0, and an ROE of 7.5%. The CFO recommends that the firm borrow money, use the funds to buy back stock, and raise the equity multiplier to 2.0. The size of the firm (assets) would not change. She thinks that operations would not be affected, but interest on the new debt would lower the profit margin to 4.5%. This would probably be a good move, as it would increase the ROE from 7.5% to 13.5%. a. True b. False

Q: Suppose all firms follow similar financing policies, face similar risks, have equal access to capital, and operate in competitive product and capital markets. However, firms face different operating conditions because, for example, the grocery store industry is different from the airline industry. Under these conditions, firms with high profit margins will tend to have high asset turnover ratios, and firms with low profit margins will tend to have low turnover ratios. a. True b. False

Q: The market/book (M/B) ratio tells us how much investors are willing to pay for a dollar of accounting book value. In general, investors regard companies with higher M/B ratios as less risky and/or more likely to enjoy higher growth in the future. a. True b. False

Q: The price/earnings (P/E) ratio tells us how much investors are willing to pay for a dollar of current earnings. In general, investors regard companies with higher P/E ratios as less risky and/or more likely to enjoy higher growth in the future. a. True b. False

Q: In general, if investors believe that a company is relatively risky and/or has relatively poor growth prospects, then the company will have relatively high P/E, M/B, and EV/EBITDA ratios. a. True b. False

Q: Market value ratios provide management with an indication of how investors view the firm's past performance and especially its future prospects. These ratios include the Price/Earnings, the Market/Book, and Enterprise Value/EBITDA ratios. a. True b. False

Q: The return on invested capital (ROIC) differs from the return on assets (ROA). First, ROIC is based on total invested capital rather than total assets. Second, the numerator of the ROIC is after-tax operating income rather than net income. a. True b. False

Q: The return on common equity (ROE) is generally regarded as being less significant, from a stockholder's viewpoint, than the return on total assets (ROA). a. True b. False

Q: Since the ROA measures the firm's effective utilization of assets without considering how these assets are financed, two firms with the same EBIT must have the same ROA. a. True b. False

Q: Other things held constant, the more debt a firm uses, the lower the firm's return on total assets will be. a. True b. False

Q: The advantage of the basic earning power ratio (BEP) over the return on total assets for judging a company's operating efficiency is that the BEP does not reflect the effects of debt and taxes. a. True b. False

Q: Other things held constant, the more debt a firm uses, the lower the firm's operating margin will be. a. True b. False

Q: Other things held constant, a decline in sales accompanied by an increase in financial leverage must result in a lower profit margin. a. True b. False

Q: Other things held constant, the more debt a firm uses, the lower the firm's profit margin will be. a. True b. False ANSWER: True LOCAL STANDARDS: United States - OH - Default City - N/A - Since we still do not have the Cengage Business School Outcomes, you do not need to include anything for this category. 27. Suppose you are analyzing two firms in the same industry. Firm A has a profit margin of 10% versus a margin of 8% for Firm B. Firm A's total debt to total capital ratio [measured as (Short-term debt + Long-term debt)/(Debt + Preferred stock + Common equity)] is 70% versus 20% for Firm B. Based only on these two facts, you cannot reach a conclusion as to which firm is better managed, because the difference in debt, not better management, could be the cause of Firm A's higher profit margin. a. True b. False ANSWER: False RATIONALE: A's higher total debt to total capital ratio would tend to lower its profit margin. Since its margin is already higher, this indicates that A is the better managed company. LOCAL STANDARDS: United States - OH - Default City - N/A - Since we still do not have the Cengage Business School Outcomes, you do not need to include anything for this category.

Q: It is appropriate to use the fixed assets turnover ratio to appraise firms' effectiveness in managing their fixed assets if and only if all of the firms being compared have the same proportion of fixed assets to total assets. a. True b. False

Q: The inventory turnover and current ratio are related. The combination of a high current ratio and a low inventory turnover ratio, relative to industry norms, suggests that the firm has an above-average inventory level and/or that part of the inventory is obsolete or damaged. a. True b. False

Q: Significant variations in accounting methods among firms make meaningful ratio comparisons between firms more difficult than if all firms used the same or similar accounting methods. a. True b. False

Q: The "apparent," but not necessarily the "true," financial position of a company whose sales are seasonal can change dramatically during a given year, depending on the time of year when the financial statements are constructed. a. True b. False

Q: The return on invested capital measures the total return that a company has provided for its investors. a. True b. False

Q: The profit margin measures net income per dollar of sales. a. True b. False

Q: The operating margin measures operating income per dollar of assets. a. True b. False

Q: The basic earning power ratio (BEP) reflects the earning power of a firm's assets after giving consideration to financial leverage and tax effects. a. True b. False

Q: Profitability ratios show the combined effects of liquidity, asset management, and debt management on a firm's operating results. a. True b. False

Q: The times-interest-earned ratio measures the extent to which operating income can decline before the firm is unable to meet its annual interest costs. a. True b. False

Q: Debt management ratios show the extent to which a firm's managers are attempting to magnify returns on owners' capital through the use of financial leverage. a. True b. False ANSWER: True LOCAL STANDARDS: United States - OH - Default City - N/A - Since we still do not have the Cengage Business School Outcomes, you do not need to include anything for this category. 14. The more conservative a firm's management is, the higher the firm's total debt to total capital ratio [measured as (Short-term debt + Long-term debt)/(Debt + Preferred stock + Common equity)] is likely to be. a. True b. False ANSWER: False LOCAL STANDARDS: United States - OH - Default City - N/A - Since we still do not have the Cengage Business School Outcomes, you do not need to include anything for this category. 15. Other things held constant, the higher a firm's total debt to total capital ratio [measured as (Short-term debt + Long-term debt)/(Debt + Preferred stock + Common equity)], the higher its TIE ratio will be. a. True b. False ANSWER: False LOCAL STANDARDS: United States - OH - Default City - N/A - Since we still do not have the Cengage Business School Outcomes, you do not need to include anything for this category.

Q: If a firm's fixed assets turnover ratio is significantly higher than the average for its industry, then it could be that the firm uses its fixed assets very efficiently or is operating at over capacity and should probably add fixed assets. a. True b. False

Q: The days sales outstanding ratio tells us how long it takes, on average, to collect after a sale is made. The DSO can be compared with the firm's credit terms to get an idea of whether customers are paying on time. a. True b. False

Q: In general, it's better to have a low inventory turnover ratio than a high one, as a low ratio indicates that the firm has an adequate stock of inventory relative to sales and thus will not lose sales as a result of running out of stock. a. True b. False

Q: A decline in a firm's inventory turnover ratio suggests that it is improving both its inventory management and its liquidity position, i.e., that it is becoming more liquid. a. True b. False

Q: The inventory turnover ratio and days sales outstanding (DSO) are two ratios that are used to assess how effectively a firm is managing its current assets. a. True b. False

Q: If a firm sold some inventory on credit as opposed to cash, there is no reason to think that either its current or quick ratio would change. a. True b. False

Q: If a firm sold some inventory on credit, its current ratio would probably not change much, but its quick ratio would increase. a. True b. False

Q: If a firm sold some inventory for cash and left the funds in its bank account, its current ratio would probably not change much, but its quick ratio would decline. a. True b. False

Q: High current and quick ratios always indicate that the firm is managing its liquidity position well. a. True b. False

Q: Although a full liquidity analysis requires the use of a cash budget, the current and quick ratios provide fast and easy-to-use estimates of a firm's liquidity position. a. True b. False

Q: Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate itemized deductions totaling $25,750. Their total income from wages is $169,100. Assume the following tax table is applicable: Married Couples Filing Joint Returns If Your Taxable Income Is You Pay This Amount on the Base of the Bracket Plus This Percentage on the Excess over the Base Average Tax Rate at Top of Bracket Up to $19,050 $0.00 10.0% 10.0% $19,050-$77,400 1,905.00 12.0 11.5 $77,400-$165,000 8,907.00 22.0 17.1 $165,000-$315,000 28,179.00 24.0 20.4 $315,000-$400,000 64,179.00 32.0 22.8 $400,000-$600,000 91,379.00 35.0 26.9 Over $600,000 161,379.00 37.0 37.0 What is their average tax rate? ​ a. 16.3% b. 17.93% c. 19.21% d. 17.20% e. 14.64%