11) In the long run, when the Fed increases the quantity of money, the A) price level rises. B) nominal interest rate falls. C) demand for money decreases. D) price level falls. E) real interest rate rises. 12) In the long run, an increase in the quantity of money leads to A) an equal percentage increase in the real interest rate. B) a smaller […]

  41) If x increases whenever y decreases, then x and y are A) not related. B) positively related. C) directly related. D) negatively related. E) related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis.   42) Whenever one variable increases, another variable decreases. The two variables are A) definitely related […]

    139.Which of the following is true? a.The form, content, and frequency of variance reports vary considerably among companies. b.The form, content, and frequency of variance reports do not vary among companies. c.The form and content of variance reports vary considerably among companies, but the frequency is always weekly. d.The form and content of variance reports are consistent among companies, but the frequency varies. […]

  81. Ashland Inc. is a manufacturer of small appliances. For which of the following activities would Ashland be more likely to use a static budget than a flexible budget? A. For planning the amount of direct materials that will need to be purchased in the upcoming year.B. For the evaluation of whether or not actual direct labor costs were reasonably close to budgeted direct labor costs.C. For the comparing […]

  31.Assumethesupplycurveforcigarsisatypical,upward-slopingstraightline,andthedemandcurveforcigarsisatypical,downward-slopingstraightline.Supposetheequilibriumquantityinthemarketforcigarsis1,000permonthwhenthereisnotax.Thenataxof$0.50percigarisimposed.Theeffectivepricepaidbybuyersincreasesfrom a.Thedemandforcigarsislesselasticthanthesupplyofcigars. b.Thetaxcausesadecreaseinconsumersurplusof$390andadecreaseinproducersurplusof$97.50. c.Thedeadweightlossofthetaxis$12.50. d.Alloftheabovearecorrect. 32.Supposethatpolicymakersareconsideringplacingataxoneitheroftwomarkets.InMarketA,thetaxwillhaveasignificanteffectonthepriceconsumerspay,butitwillnotaffectequilibriumquantityverymuch.InMarketB,thesametaxwillhaveonlyasmalleffectonthepriceconsumerspay,butitwillhavealargeeffectontheequilibriumquantity.Otherfactorsareheldconstant.Inwhichmarketwillthetaxhavealargerdeadweightloss? a.MarketA b.MarketB c.Thedeadweightlosswillbethesameinbothmarkets. d.Thereisnotenoughinformationtoanswerthequestion. 33.Consideragoodtowhichaper-unittaxapplies.Thegreaterthepriceelasticitiesofdemandandsupplyforthegood,the a.smallerthedeadweightlossfromthetax. b.greaterthedeadweightlossfromthetax. c.moreefficientisthetax. d.moreequitableisthedistributionofthetaxburdenbetweenbuyersandsellers. 34.Consideragoodtowhichaper-unittaxapplies.Thesizeofthedeadweightthatresultsfromthetaxissmaller,the a.largeristhepriceelasticityofdemand. b.smalleristhepriceelasticityofsupply. c.largeristheamountofthetax. d.Alloftheabovearecorrect. 35.Consideragoodtowhichaper-unittaxapplies.Thesizeofthedeadweightthatresultsfromthetaxissmaller,the a.lesselasticisthedemandforthegood. b.lesselasticisthesupplyofthegood. c.smalleristheamountofthetax. d.Alloftheabovearecorrect. 36.Supposethegovernmentplacesaper-unittaxonagood.Thesmallerthepriceelasticitiesofdemandandsupplyforthegood,the a.smallerthedeadweightlossfromthetax. b.greaterthedeadweightlossfromthetax. c.lessefficientisthetax. d.moreequitableisthedistributionofthetaxburdenbetweenbuyersandsellers. 37.Suppose thepriceofmilkis$2.39pergallon,andtheequilibriumquantityofmilkis100 thousandgallonsperdaywithnotaxonmilk.Startingfromthisinitialsituation,whichofthefollowingscenarioswouldresultinthesmallestdeadweightloss? a.The priceelasticityofdemandformilkis 0.3,thepriceelasticityofsupplyformilk is0.7,andthemilktaxamountsto$0.40pergallon. b.The priceelasticityofdemandformilkis 0.2,thepriceelasticityofsupplyformilk is0.5,andthemilktaxamountsto$0.30pergallon. c.The priceelasticityofdemandformilkis 0.2,thepriceelasticityofsupplyformilk is0.7,andthemilktaxamountsto$0.30pergallon. d.The priceelasticityofdemandformilkis 0.1,thepriceelasticityofsupplyformilk is0.5,andthemilktaxamountsto$0.20pergallon. 38.Assume the priceof gasolineis $2.00 pergallon, andthe equilibrium quantityof gasolineis 10 milliongallons perdaywithnotaxongasoline.Startingfromthisinitialsituation,whichofthefollowingscenarioswouldresultinthelargestdeadweightloss? a.Thepriceelasticityofdemandforgasolineis0.1;thepriceelasticityofsupplyforgasolineis0.6;andthegasolinetaxamountsto$0.20pergallon. b.Thepriceelasticityofdemandforgasolineis0.1;thepriceelasticityofsupplyforgasolineis0.4;andthegasolinetaxamountsto$0.20pergallon. […]

  Figure 13-3     38) Refer to Figure 13-3.  The marginal revenue from one additional unit sold is the sum of the gain in revenue from selling the additional unit and the loss in revenue from having to charge a lower price to sell the additional unit. Based on the diagram in the figure, A) X represents the gain (price effect) and Y the […]

    31. Which ratio measures the length of time between the purchase of inventory and the eventual collection of cash from sales? A. Quick ratioB. Cash-to-cash operating cycle ratioC. Accounts receivable turnover ratioD. Inventory turnover ratio   32. Partin Manufacturing has the following information available from its 12/31/08 and 12/31/07 financial statements:    12/31/08     12/31/08 Cash $  12,000   Accounts payable $ 10,000 Accounts receivable 6,000   Salaries payable […]

    21. Walters Inc. power washes commercial and residential buildings. The company is preparing to bid on a competitive job involving a large commercial building. Walters estimates that the job will have the following costs:  Direct materials $500 Direct labor 1,500 Overhead 400 Selling and administrative costs 200     Walters would like to earn a $1,600 profit on the job. The company applies a […]

    61.For the following pair of compounds, select a correct structural characterization from the response list:  1-butanol and 2-butanol. a.are constitutional isomers b.have the same number of carbon atoms and the same number of oxygen atoms but are not constitutional isomers c.have the same number of carbon atoms but a different number of oxygen atoms d.have the same number of oxygen atoms but a […]

    31) Refer to Table 11-4. Victoria’s profit-maximizing output is where A) total profit equals $3. B) marginal revenue and marginal cost both equal $4. C) marginal revenue and marginal cost both equal $3. D) marginal cost is at its minimum value.   32) Refer to Table 11-4. At Victoria’s profit-maximizing output A) profit equals $2. B) total revenue equals $24 and total cost […]