51. Richard and Alice are divorced and under the terms of their written divorce agreement signed on December 30, 2007, Richard was required to pay Alice $1,500 per month of which $700 was designated as child support. He made 12 such payments in 2014. Additionally, Richard voluntarily paid Alice $1,200 per month for 12 months of 2014, no portion of which was designated as child […]

  51. (p. 502) Compared to the diplomatic skills required in a transnational management position, what are the major skills people operating in the home country require?  A. Proficiency in at least two languages B. Attributes of effective salespersons C. People management and reporting skills D. Quantitative skills to read market trends E. Effective strategic planning skills 52. (p. 503) Which of the following traits of the expatriate would ensure the company to have confidence in […]

  71) Suppose the change in the government’s debt-to-GDP ratio in a given year is 0.026. This figure tells us that the government’s debt-to-GDP ratio has A) fallen by 0.026%. B) risen by 0.026%. C) risen by 2.6 percentage points. D) fallen by 2.6 percentage points. E) risen by 0.026 percentage points. 72) Suppose the government’s debt-to-GDP ratio on January 1 of Year 1 is […]

  21) Consider Canada’s balance of payments. If the Canadian government were to purchase more foreign-exchange reserves, this transaction A) represents the sale of an asset, and thus enters as a credit item in the official financing account. B) represents the purchase of an asset from abroad, and thus enters as a debit item in the capital-service account. C) enters as a credit in the […]

  21) Refer to Figure 7-5. At the midpoint of the demand curve, in absolute value, A) the price elasticity coefficient is at a maximum. B) the price elasticity coefficient is at a minimum. C) the price elasticity coefficient is zero. D) the price elasticity coefficient is one. 22) Which of the following statements is true about the price elasticity of demand along a downward […]

  89) The term “early adopters” refers to A) firms that are the first to implement a new technology that is used to produce new goods or services. B) book clubs that are first to recommend best-selling books to their members. C) consumers who respond quickly to fads, seasonal changes, etc. D) consumers who are willing to pay high prices to be among the first […]

    8.1   Technology: An Economic Definition   1) A firm has successfully adopted a positive technological change when A) it can produce more output using the same inputs. B) it produces less pollution in its production process. C) can pay its workers less yet increase its output. D) it sees an increase in worker productivity.   2) Which of the following is not a […]

    41) Economists have used the ultimatum game and the dictator game in experiments designed to determine A) whether consumers care about fairness when they make decisions. B) whether consumers believe it is fair for producers to raise the price of a product for which there is excess demand. C) whether consumers understand the difference between implicit costs and explicit costs. D) whether consumers […]

  31) A(n) ________ comes to an end with a business cycle ________. A) recession; peak B) recession; trough C) expansion; trough D) expansion; bubble   32) The Business Cycle Dating Committee defines a recession as A) two consecutive quarters of declining real GDP. B) two consecutive quarters of declining nominal GDP. C) a significant decline in activity visible in industrial production, employment, real income, […]

  11) Why do some workers lose their job when the minimum wage is increased? A) The increase in labor costs decreases the supply of the product, thereby raising the price of the good so that the equilibrium quantity decreases to zero. B) The increase in the minimum wage decreases the quantity of labor demanded. C) The demand for labor is perfectly inelastic. D) The […]