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Question : 101) The union wage premium refers to the A) portion of : 1384294

Economics

 

101) The union wage premium refers to the

A) portion of a union wage attributable to fees payable to the union.

B) trade-off the union faces between the level of the wage and the size of the union.

C) higher wage attributable only to the union status of the job.

D) wage that a union is able to set unilaterally.

E) wage that an employer is able to set unilaterally.

102) The purpose of a labour union is to

A) maintain a minimum level of employment.

B) exploit its labour-market power in the same way a monopolist exploits its market power in product markets.

C) exploit its labour-market power in the same way a monopolist exploits its market power in labour markets.

D) increase employment in its industry.

E) decrease employment in its industry.

103) One of the most unionized industries in Canada is

A) agriculture.

B) finance and insurance.

C) real estate.

D) education.

E) non-governmental administrative services.

104) An important unanswered question about the role of unions in developed economies is whether the presence of unions affects long-run productivity. There is some evidence to suggest that the presence of a union

A) increases the human capital of unionized workers, which leads to increased long-run productivity for the firm.

B) reduces the demand for labour and therefore the demand for physical capital.

C) decreases the human capital of unionized workers, and therefore reduces long-run productivity.

D) reduces the level of employment (because of the union-wage premium) and thus raises the marginal product of labour.

E) reduces the expected profitability of installed capital and therefore leads to reduced capital investment by firms.

105) The general theme of the “good jobs-bad jobs” debate is the

A) increasing concentration of jobs in the high-technology sector at the expense of jobs in the manufacturing sector.

B) increase in non-unionized jobs at the expense of union jobs.

C) migration of “good jobs” to foreign competitors.

D) increase in the share of total employment in the service sector and the decline in the share of total employment in the manufacturing sector.

E) increase in the share of total employment in the manufacturing sector and a decline in the share of total employment in the service sector.

106) Given the continuing decline in manufacturing’s share of total employment in Canada and other developed economies, which of the following provides a possible explanation that this phenomenon is a genuine problem?

A) Real disposable income has continued to rise.

B) The decline is partly due to increasing productivity in that sector.

C) Many service jobs are low-wage, part-time, jobs, and many are without benefits.

D) Consumers have an increased demand for services as real income increases.

E) Productivity increases in the service sector are likely underestimated.

107) Some people are concerned that “good” manufacturing jobs are being replaced by “bad” service-sector jobs. Why is this not necessarily a problem?

A) Average real per capita income has continued to rise, despite the rise of the service sector.

B) The decline in manufacturing employment is partly due to increasing productivity in that sector.

C) Productivity increases in the service sector are likely underestimated.

D) Consumers have an increased demand for services as real income increases.

E) all of the above

108) In Canada in 2011, the share of total employment in agriculture was about

A) 50%.

B) 20%.

C) 10%

D) 2%.

E) 0.2%.

109) In Canada in 2011, the share of total employment in the service sector was

A) less than 10%.

B) about 25%.

C) about 50%.

D) over 75%.

E) over 90%.

110) With regard to the “good jobs-bad jobs” debate, why is the categorization of manufacturing jobs as “good jobs” and service-sector jobs as “bad jobs” not necessarily accurate?

A) Because all service-sector jobs have experienced large gains in productivity over the past two decades and an associated rise in wages.

B) Because all manufacturing jobs have experienced a decline in real wages over the past two decades.

C) Because many service-sector jobs require highly skilled workers and are highly paid.

D) Because all manufacturing jobs have experienced declines in productivity over the past two decades and an associated increase in wages.

E) Because all service-sector jobs are preferable to manufacturing jobs.

 

 

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July 1, 2023
    

 

41. Which of the following statements is correct? 
A. When cost of goods sold as a percentage of sales increases the gross margin percentage will increase.
B. It is possible for cost of goods sold in dollars to increase while cost of goods sold as a percentage of sales decreases.
C. If gross margin percentage is the same for the current and past year, then sales and cost of goods sold in dollars did not change.
D. If gross margin percentage increases from one year to the next, then the net income percentage will also increase from one year to the next.

42. Which of the following statements is incorrect? 
A. If selling and administrative expenses as a percentage of sales increases, then gross margin percentage will decrease.
B. If the cost of goods sold percentage decreases and other expenses do not change, then profit margin will increase as a percentage of sales.
C. If sales dollars decrease, a company might still report a higher gross profit percentage if cost of goods sold decreases at a faster rate than the decrease in sales.
D. It is possible for selling and administrative expense in dollars to decrease, while selling and administrative expenses as a percentage of sales to increase.

43. During 2010, Home Style's cost of goods sold percentage was 68.2% and selling and store operating costs was 19.3% of sales. During 2009, their cost of goods sold percentage was 68.9% while selling and store operating costs was 19.2% of sales. What effect would the change in these percentages have on 2010's gross margin percentage and profit margin percentage? 
A. The decrease in the cost of goods sold percentage would increase both the gross margin and profit margin percentages, but the increase in the selling and store operating costs percentage would decrease both the gross margin and profit margin percentages.
B. The decrease in the cost of goods sold percentage would decrease both the gross margin and profit margin percentages, but the increase in the selling and store operating costs would increase both the gross margin and profit margin percentages.
C. The decrease in the cost of goods sold percentage would increase both the gross margin and profit margin percentages and the decrease in the selling and store operating costs percentage would decrease the profit margin percentage.
D. The decrease in the cost of goods sold percentage would decrease both the gross margin and profit margin percentages, but selling and store operating costs would increase the profit margin percentage.

44. Which of the following ratios is not considered to be a test of profitability? 
A. Current ratio
B. Profit margin
C. Return on assets
D. Earnings per share

45. The records of Everyday Electronics Corporation for a particular period include the following:
  
What is the return on equity ratio? 
A. 13.2%.
B. 23.8%.
C. 24.0%.
D. 8.4%.

46. The records of Marshall Company include the following:
  
The return on assets is (round to the nearest tenth of a percent) 
A. 14.9%.
B. 18.3%.
C. 15.3%.
D. 14.7%.

47. The records of Marshall Company include the following:
  
The return on equity is (round to the nearest tenth of a percent) 
A. 21.1%.
B. 10.2%.
C. 16.4%.
D. 17.1%.

48. The records of Marshall Company include the following:
  
The financial leverage percentage is which of the following? 
A. 1.8%
B. 2.8%.
C. 5.8%.
D. 6.4%.

49. Which of the following transactions decreases earnings per share? 
A. Declaring cash dividends payable to the common stockholders.
B. Purchasing treasury stock.
C. The accrual of revenue.
D. Declaring and distributing a 10% common stock dividend.

50. Which of the following transactions decreases earnings per share? 
A. Collection of an account receivable.
B. Selling treasury stock for an amount less than its cost.
C. A decrease in the market value per share.
D. Paying cash in advance for rent.

 

 

default image
July 1, 2023
    

 

41. Which of the following statements is correct? 
A. When cost of goods sold as a percentage of sales increases the gross margin percentage will increase.
B. It is possible for cost of goods sold in dollars to increase while cost of goods sold as a percentage of sales decreases.
C. If gross margin percentage is the same for the current and past year, then sales and cost of goods sold in dollars did not change.
D. If gross margin percentage increases from one year to the next, then the net income percentage will also increase from one year to the next.

42. Which of the following statements is incorrect? 
A. If selling and administrative expenses as a percentage of sales increases, then gross margin percentage will decrease.
B. If the cost of goods sold percentage decreases and other expenses do not change, then profit margin will increase as a percentage of sales.
C. If sales dollars decrease, a company might still report a higher gross profit percentage if cost of goods sold decreases at a faster rate than the decrease in sales.
D. It is possible for selling and administrative expense in dollars to decrease, while selling and administrative expenses as a percentage of sales to increase.

43. During 2010, Home Style's cost of goods sold percentage was 68.2% and selling and store operating costs was 19.3% of sales. During 2009, their cost of goods sold percentage was 68.9% while selling and store operating costs was 19.2% of sales. What effect would the change in these percentages have on 2010's gross margin percentage and profit margin percentage? 
A. The decrease in the cost of goods sold percentage would increase both the gross margin and profit margin percentages, but the increase in the selling and store operating costs percentage would decrease both the gross margin and profit margin percentages.
B. The decrease in the cost of goods sold percentage would decrease both the gross margin and profit margin percentages, but the increase in the selling and store operating costs would increase both the gross margin and profit margin percentages.
C. The decrease in the cost of goods sold percentage would increase both the gross margin and profit margin percentages and the decrease in the selling and store operating costs percentage would decrease the profit margin percentage.
D. The decrease in the cost of goods sold percentage would decrease both the gross margin and profit margin percentages, but selling and store operating costs would increase the profit margin percentage.

44. Which of the following ratios is not considered to be a test of profitability? 
A. Current ratio
B. Profit margin
C. Return on assets
D. Earnings per share

45. The records of Everyday Electronics Corporation for a particular period include the following:
  
What is the return on equity ratio? 
A. 13.2%.
B. 23.8%.
C. 24.0%.
D. 8.4%.

46. The records of Marshall Company include the following:
  
The return on assets is (round to the nearest tenth of a percent) 
A. 14.9%.
B. 18.3%.
C. 15.3%.
D. 14.7%.

47. The records of Marshall Company include the following:
  
The return on equity is (round to the nearest tenth of a percent) 
A. 21.1%.
B. 10.2%.
C. 16.4%.
D. 17.1%.

48. The records of Marshall Company include the following:
  
The financial leverage percentage is which of the following? 
A. 1.8%
B. 2.8%.
C. 5.8%.
D. 6.4%.

49. Which of the following transactions decreases earnings per share? 
A. Declaring cash dividends payable to the common stockholders.
B. Purchasing treasury stock.
C. The accrual of revenue.
D. Declaring and distributing a 10% common stock dividend.

50. Which of the following transactions decreases earnings per share? 
A. Collection of an account receivable.
B. Selling treasury stock for an amount less than its cost.
C. A decrease in the market value per share.
D. Paying cash in advance for rent.

 

 

default image
July 1, 2023
    

 

41. Which of the following statements is correct? 
A. When cost of goods sold as a percentage of sales increases the gross margin percentage will increase.
B. It is possible for cost of goods sold in dollars to increase while cost of goods sold as a percentage of sales decreases.
C. If gross margin percentage is the same for the current and past year, then sales and cost of goods sold in dollars did not change.
D. If gross margin percentage increases from one year to the next, then the net income percentage will also increase from one year to the next.

42. Which of the following statements is incorrect? 
A. If selling and administrative expenses as a percentage of sales increases, then gross margin percentage will decrease.
B. If the cost of goods sold percentage decreases and other expenses do not change, then profit margin will increase as a percentage of sales.
C. If sales dollars decrease, a company might still report a higher gross profit percentage if cost of goods sold decreases at a faster rate than the decrease in sales.
D. It is possible for selling and administrative expense in dollars to decrease, while selling and administrative expenses as a percentage of sales to increase.

43. During 2010, Home Style's cost of goods sold percentage was 68.2% and selling and store operating costs was 19.3% of sales. During 2009, their cost of goods sold percentage was 68.9% while selling and store operating costs was 19.2% of sales. What effect would the change in these percentages have on 2010's gross margin percentage and profit margin percentage? 
A. The decrease in the cost of goods sold percentage would increase both the gross margin and profit margin percentages, but the increase in the selling and store operating costs percentage would decrease both the gross margin and profit margin percentages.
B. The decrease in the cost of goods sold percentage would decrease both the gross margin and profit margin percentages, but the increase in the selling and store operating costs would increase both the gross margin and profit margin percentages.
C. The decrease in the cost of goods sold percentage would increase both the gross margin and profit margin percentages and the decrease in the selling and store operating costs percentage would decrease the profit margin percentage.
D. The decrease in the cost of goods sold percentage would decrease both the gross margin and profit margin percentages, but selling and store operating costs would increase the profit margin percentage.

44. Which of the following ratios is not considered to be a test of profitability? 
A. Current ratio
B. Profit margin
C. Return on assets
D. Earnings per share

45. The records of Everyday Electronics Corporation for a particular period include the following:
  
What is the return on equity ratio? 
A. 13.2%.
B. 23.8%.
C. 24.0%.
D. 8.4%.

46. The records of Marshall Company include the following:
  
The return on assets is (round to the nearest tenth of a percent) 
A. 14.9%.
B. 18.3%.
C. 15.3%.
D. 14.7%.

47. The records of Marshall Company include the following:
  
The return on equity is (round to the nearest tenth of a percent) 
A. 21.1%.
B. 10.2%.
C. 16.4%.
D. 17.1%.

48. The records of Marshall Company include the following:
  
The financial leverage percentage is which of the following? 
A. 1.8%
B. 2.8%.
C. 5.8%.
D. 6.4%.

49. Which of the following transactions decreases earnings per share? 
A. Declaring cash dividends payable to the common stockholders.
B. Purchasing treasury stock.
C. The accrual of revenue.
D. Declaring and distributing a 10% common stock dividend.

50. Which of the following transactions decreases earnings per share? 
A. Collection of an account receivable.
B. Selling treasury stock for an amount less than its cost.
C. A decrease in the market value per share.
D. Paying cash in advance for rent.

 

 

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