21) Refer to Table 11-7. Suppose Wal-Mart and Target both advertise that they will match the lowest price offered by any competitor. What is the purpose of such a strategy? A) to signal to each other not to charge below the current low price B) to signal to each other that they will not hesitate to initiate a price war C) to signal […]

  21.3   Development Intervention   1) Studies by the World Bank during the 1970s indicate that A) growth in GDP always leads to economic development. B) growth in GDP does not guarantee improvements in development indicators. C) growth in GDP improves education, nutrition and health. D) growth in GDP decreases the GDP per capita.   2) With ________, outcomes of specific interventions are determined by […]

  17.1   What Is Monetary Policy? 1) Toll Brothers, a residential home builder, did well during the recession in 2001 but did not do so well in 2007 after the housing bubble burst.  The reason for this is A) the Fed lowered interest rates in 2001 but raised interest rates in 2007 to help fight inflation. B) the Fed lowered interest rates in 2001 but […]

    21.Trading securities were purchased on April 1 for $900. On December 31, the market value of those securities is $700. Which of the following is part of the adjusting entry necessary on December 31? a.Debit Unrealized Loss on Trading Securities for $700 b.Debit Realized Loss on Trading Securities for $200 c.Credit Trading Securities for $200 d.Credit Unrealized Loss on Trading Securities for $200 […]

  101.Walsam Tools applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for August follows:   EstimatedActual Overhead cost              $160,000              $161,000 Direct labor hours              8,000              8,200 Direct labor cost              $120,000              $115,800   How much is the predetermined overhead rate? A.$1.33 B.$20.00 C.$1.03 D.$19.63     102.If Duffy Company budgets total overhead costs for the next year of $40,000 and anticipates […]

  12.2   Does GDP Measure What We Want It to Measure? 1) The Philippines and Vietnam have roughly the same size population.  Suppose the GDP of the Philippines is $1,000 billion and the GDP of Vietnam is $10,000 billion.  You should conclude A) a typical person in Vietnam is 10 times as well off as the typical person in the Philippines. B) a typical person […]

  142.Sandford Electronics sells desktops and notebook computers. Currently, the desktop product line takes up approximately 50 percent of the company’s retail floor space. The president of the company is trying to decide whether the company should continue offering desktops or just concentrate on notebooks. If the desktop product line is dropped, salaries and other direct fixed costs can be avoided. In addition, sales of […]

    91. The basic tenet of the CAPM is that a stock’s expected risk premium should be:  A. greater than the expected market return. B. proportionate to the market return. C. proportionate to the stock’s beta. D. greater than the risk-free rate of return. 92. What effect might operating leverage be expected to have on a project’s beta?  A. Beta will increase. B. Beta will decrease. C. Beta will not be affected. D. The […]

    61) The baby boomers born in the 1940s and 1950s began entering the work force in the 1960s and 1970s . This demographic event ________ the natural unemployment rate, thereby shifting the short-run Phillips curve ________ and shifting the long-run Phillips curve ________. A) increased; rightward; rightward B) decreased; leftward; leftward C) increased; rightward; leftward D) increased; leftward; rightward E) decreased; rightward; rightward […]

  1) Unlike training, career development: A) has a short-term focus. B) is initiated by employees. C) has a broad scope. D) benefits the organization.   2) Career development is best defined as a: A) one-time event or opportunity to enhance long-term skills. B) formal, organized, ongoing effort to develop people skills. C) highly selective process which guarantees success. D) process that focuses on immediate […]