41. (p. 312) Which of the following explains why most of the companies with Indian operations are saying that they are not leaving, but planning on expanding their Indian operations?  A. Government machinery is one of the most efficient in the world. B. Living standards for expatriates are comparable to the world’s best. C. Qualified labor is cheap, and the market potential is massive. D. Proximity to China makes sourcing of […]

1.Which of the following statements concerning carbohydrates is INCORRECT? A) Carbohydrates serve important energy and structural roles for plants and animals. B) Monosaccharides are the simplest carbohydrates and are known as simple sugars. C) Monosaccharides join together to form disaccharides and polysaccharides by hydrogen bonding. D) Humans store excess glucose for short term energy requirements in the polysaccharide glycogen. E) Carbohydrates that can be oxidized […]

    11) Which of the following statements best describes the study of economics? Economics studies how A) to organize production so that scarcity does not occur. B) firms make profits. C) we make choices in the face of scarcity. D) to create incentives so that scarcity does not exist. E) businesses reach decisions.   12) Which of the following best defines economics? A) Economics […]

  101.Supposethecostofoperatinga75roomhotelforanightis$6,000andthereare5emptyroomsfortonight.Themarginalcostperroompernight a.is$40. b.is $80. c.is $120. d.cannotbedeterminedfromtheinformationgiven. 102.Supposethecostofoperatinga75roomhotelforanightis$6,000andthereare5emptyroomsfortonight.Ifthemarginalcostofoperatingoneroomforonenightis$40,thehotelmanagershouldrentoneoftheemptyroomsonlyif a customeris willing topay a.morethan$40,astheaveragebenefitwillexceedthemarginalcost. b.morethan$40,asthemarginalbenefitwillexceedthemarginalcost. c.morethan$80,astheaveragebenefitwillexceedthemarginalcost. d.morethan$80,asthemarginalbenefitwillexceedthemarginalcost. 103.Itcostsacompany$35,000toproduce500graphingcalculators.Thecompany’scostwillbe$35,080ifitproducesanadditionalgraphingcalculator.Ifthecompanyproduces501graphingcalculatorsthen a.itsaveragecostisgreaterthanitsmarginalcost. b.itsaveragecostanditsmarginalcostareequal. c.itsaveragecostislessthanitsmarginalcost. d.Thiscannotbedeterminedfromtheinformationgiven. 104.DeShawnhasspent$600purchasingandrepairinganoldfishingboat,whichheexpectstosellfor$900oncetherepairsarecomplete.DeShawndiscoversthat,inadditiontothe$600hehasalreadyspent,heneedstomakeanadditionalrepair,whichwillcostanother$400,inordertomaketheboatworth$900topotentialbuyers.Hecanselltheboatasitisnowfor$400.Whatshouldhedo? a.Heshouldselltheboatasitisnowfor$400. b.Heshouldkeeptheboatsinceitwouldnotberationaltospend$1,000onrepairsandthenselltheboatfor$900. c.Heshouldcompletetherepairsandselltheboatfor$900. d.Itdoesnotmatterwhichactionhetakes;theoutcomeisthesameeitherway. 105.Betty’sBakerybakesfreshbreadeverymorning.Anybreadnotsoldbytheendofthedayisthrownaway.AloafofbreadcostsBetty$2.00toproduce,andshepricesloavesofbreadat$3.50perloaf.SupposeneartheendofonedayBettystillhas12loavesofbreadonhand.Whichofthefollowingiscorrect? a.Bettyshouldonlyselltheremainingbreadfor$3.50perloafsincethatistheregularprice. b.Bettyshouldonlyselltheremainingbreadfor$2.00perloaformoresincethatiswhatthebreadcoststomake. c.Bettyshouldbewillingtoselltheremainingbreadforanypriceabove$0perloafsinceshewillhavetothrowitawayifshedoesnotsellitforsomething. d.Bettyshouldjustthrowthebreadawayandchangethepriceofherbreadstartingtomorrowtomakesureshesellsallofherbreadeachday. 106.Abagelshopsellsfreshbakedbagelsfrom5a.m.until7p.m.everyday.Theshopdoesnotsellday-oldbagels,soallunsoldbagelsarethrownawayat7p.m.eachday.Thecostofmakingandsellingadozenbagelsis$1.00;therearenocostsassociatedwiththrowingbagelsaway.Ifthemanagerhas8dozenbagelsleftat6:30p.m.onaparticularday,whichofthefollowingalternativesismostattractive? a.Lowerthepriceoftheremainingbagels,evenifthepricefallsbelow$1.00perdozen. b.Lowerthepriceoftheremainingbagels,butundernocircumstancesshouldthepricefallbelow$1.00perdozen. c.Throwthebagelsawayandproduce8fewerdozenbagelstomorrow. d.Startingtomorrow,lowerthepriceonallbagelssotheywillallbesoldearlierintheday. 107.Rickbuysa1966Mustangfor$3,000,planningtorestoreandsellthecar.Hegoesontospend$9,000restoringthecar.Atthispointhecansellthecarfor$10,000.Asanalternative,hecanspendanadditional$3,000replacingtheengine.Withanewenginethecarwouldsellfor$13,000.Rickshould a.completetherepairsandsellthecarfor$13,000. b.sellthecarnowfor$10,000. c.nevertrysuchanexpensiveprojectagain. d.beindifferentbetween(i)sellingthecarnowand(ii)replacingtheengineandthensellingit. 108.Yvettebuysandsellsrealestate.Twoweeksago,shepaid$300,000forahouseonPineStreet,intendingtospend$50,000 on repairs and then sell the house for $400,000. Last week, the city government announced a plan to build a new landfill […]

  81) The concept of “national saving” refers to the A) difference between private saving and government saving. B) sum of private saving and government saving. C) money supply measure, M3. D) difference between the two measurements of the money supply, M3 – M2. E) total saving of the private sector. 82) What economists call “government saving” is the same as the A) government’s actual […]

  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 source of technological […]

  11.3  Wage Inequality 1) Which of the following is NOT a factor that can cause wage inequality across workers producing the same good? A) Differences in compensating wages B) Differences in productivity and human capital C) The nature and extent of discrimination in the job market D) The market price of the final good being produced by the workers 2) A person’s stock of […]

  11.Which of the following is true about import controls? a.Nontariff barriers like voluntary restraint agreements are self-imposed restrictions and cutbacks aimed at avoiding punitive trade actions from the host. b.Import controls generally exact a small price from domestic consumers. c.The social cost of import controls benefits the economy in all situations. d.Import controls improve the productivity of an industry, provide it with a level […]

  21.The shipper’s export declaration: a.may be a negotiable instrument in that it may be endorsed to other parties or may be nonnegotiable. b.acknowledges receipt of the goods, represents the basic contract between the shipper and the carrier, and serves as evidence of title to the goods for collection by the purchaser. c.is the most important document to the shipper, the carrier, and the buyer. […]

    42) If the GDP deflator rises from 185 to 190, what is the rate of inflation between the two years? A) 270% B) 50% C) 5% D) 2.7%   43) If the GDP deflator is 142, by how much have prices changed since the base year? A) Prices have increased by 42%. B) Prices have increased by 142%. C) Prices have decreased by […]