18.3   The Case Against Protection   1) If supporters of restrictions on imports argue that protection is needed to preserve a strategic industry, which of the following is being used? A) Save domestic jobs argument B) National security argument C) Dumping argument D) Infant-industry argument E) Protecting national culture argument 2) Which of the following is the national security argument against free trade? A) […]

  81) Suppose that in a perfectly competitive industry, the market price of the product is $6. A firm is producing the output level at which average total cost equals marginal cost, both of which are $8. Average variable cost is $4. To maximize its profits in the short run, the firm should A) reduce its output. B) expand its output. C) leave its output […]

  161.Spellsofunemploymentendabout a.1/5ofthetimewiththepersonleavingthelaborforce. b.1/4ofthetimewiththepersonleavingthelaborforce. c.1/3ofthetimewiththepersonleavingthelaborforce. d.1/2ofthetimewiththepersonleavingthelaborforce. 162.A personwhois notemployedand claimstobe tryinghardto findajob butreallyisnot tryinghardto findajob is a.countedasoutofthelaborforcebutshouldbecountedasunemployed. b.countedasunemployedbutshouldbecountedasoutofthelaborforce. c.correctlycountedasoutofthelaborforce. d.correctlycountedasunemployed. 163.Supposethatsomepeoplearecountedasunemployedwhen,tomaintainunemploymentcompensation,theysearchforworkonlyatplaceswheretheyareunlikelytobehired.Iftheseindividualswerecountedasoutofthelaborforceinsteadofasunemployed,then a.boththeunemploymentrateandlabor-forceparticipationratewouldbehigher. b.boththeunemploymentrateandlabor-forceparticipationratewouldbelower. c.theunemploymentratewouldbelower,andthelabor-forceparticipationratewouldbehigher. d.theunemploymentratewouldbehigher,andthelabor-forceparticipationratewouldbelower. 164.Supposethatsomepeoplereportthemselvesasunemployedwhen,infact,theyareworkingintheundergroundeconomy.Ifthesepersonswerecountedasemployed,then a.boththeunemploymentrateandlabor-forceparticipationratewouldbehigher. b.boththeunemploymentrateandlabor-forceparticipationratewouldbelower. c.theunemploymentratewouldbehigher,andthelabor-forceparticipationratewouldbehigher. d.theunemploymentratewouldbelower,andthelabor-forceparticipationratewouldbeunaffected. 165.Somepeoplewhoareemployedorwhoarenotmakingseriousefforttofindemploymentwillreportthemselvesasunemployed.Somepeoplewhowanttofindworkwillbecountedasoutofthelaborforce. a.Boththefirstandthesecondfacttendtomakethereportedunemploymentratelowerthanotherwise. b.Boththefirstandthesecondfacttendtomakethereportedunemploymentratehigherthanotherwise. c.Thefirstfacttendstomakethereportedunemploymentratehigherthanotherwise,whilethesecondfacttendstomakethereportedunemploymentratelowerthanotherwise. d.Thefirstfacttendstomakethereportedunemploymentratelowerthanotherwise,whilethesecondfacttendstomakethereportedunemploymentratehigherthanotherwise. 166.Somepersonsarecountedasoutofthelaborforcebecausetheyhavemadenoseriousorrecentefforttolookforwork.However,someoftheseindividualsmaywanttoworkeventhoughtheyaretoodiscouragedtomakeaseriousefforttolookforwork.Iftheseindividualswerecountedasunemployedinsteadofoutofthelaborforce,then a.boththeunemploymentrateandlabor-forceparticipationratewouldbehigher. b.theunemploymentratewouldbehigher,andthelabor-forceparticipationratewouldbelower. c.theunemploymentratewouldbelower,andthelabor-forceparticipationratewouldbehigher. d.boththeunemploymentrateandlabor-forceparticipationratewouldbelower. 167.Discouragedworkersareincludedin a.thenumberofunemployed. b.frictionalunemployment. c.thelaborforce. d.Noneoftheaboveiscorrect. 168.TheBureauofLaborStatisticscountsdiscouragedworkersas a.employed.Includingthemasemployedmakestheunemploymentratelowerthanotherwise. b.unemployed.Includingthemasunemployedmakestheunemploymentratehigherthanotherwise. c.outofthelaborforce.Ifthewerecountedasunemployedtheunemploymentratewouldbehigher. d.Noneoftheaboveiscorrect. 169.TheBureauofLaborStatisticsclassifiespeoplewhowouldliketoworkbuthavegivenuplookingforajobas a.unemployed.Iftheywereclassifiedasoutofthelaborforce,thereportedunemploymentratewouldbelarger. b.unemployed.Iftheywereclassifiedasoutofthelaborforce,thereportedunemploymentratewouldbesmaller. c.outofthelaborforce.Iftheywereclassifiedasunemployed,thereportedunemploymentratewouldbelarger. d.outofthelaborforce.Iftheywereclassifiedasunemployed,thereportedunemploymentratewouldbesmaller. 170.Someindividualswouldliketohaveajob,buttheyhavegivenuplookingforajobafteranunsuccessfulsearch.Theseindividualsarecalled a.detachedworkers,andtheyareclassifiedbytheBureauofLaborStatisticsasunemployed. b.detachedworkers,andtheyarenotclassifiedbytheBureauofLaborStatisticsasunemployed. c.discouragedworkers,andtheyareclassifiedbytheBureauofLaborStatisticsasunemployed. d.discouragedworkers,andtheyarenotclassifiedbytheBureauofLaborStatisticsasunemployed.    

    139.Rather Bedding makes two types of pillow—down and foam. It is currently implementing an activity-based costing system. In the past, all overhead had been applied on the basis of machine hours. The company produces 6,000 down pillows and 18,000 foam pillows per year.   Cost PoolDriver and LevelEstimated CostsUse of Driver by Down PillowsUse of Driver by Foam Pillows Equipment setup360 setups$216,000120 setups240 […]

  180.Stand Up Comics operates comedy clubs in in several states. The following financial information is available for 2014and 2013. 20142013 Income from operations$ 900,000$850,000 Net income537,420507,000 Interest expense6,0005,000 Total assets4,000,0003,500,000 Noninterest-bearing current liabilities290,000280,000 Research & development costs200,000160,000 Income tax rate40%40% Required rate of return7%6.5% Cost of capital5%4%   Intangibles are amortized over 4 years. Although net income has increased by 6 percent, a shareholder […]

    62.Electric Zero produces relay units for generators. Each relay has a standard material cost of $67. Standards call for two relays per generator. In July, the company purchased 120 relays for $7,560. The company used 104 relays in the production of 50 generators, with 4 relays damaged in the installation process. The standard quantity of labor is 20 hours per generator, with a […]

  11) Suppose the government has a budget surplus of $2 billion. If there is no Ricardo-Barro effect, what occurs? A) The supply of loanable funds curve shifts rightward, lowering the interest rate, and increasing investment. B) The demand for loanable funds curve shifts rightward, raising the interest rate, and increasing investment. C) The supply of loanable funds curve shifts leftward, raising the interest rate, […]

  51) According to the Global Market Research Reports, data for Chinese markets are available for: A) cosmetics. B) online music. C) whiskies. D) luxury goods. E) pharmaceutical. 52) Potential markets can be subdivided into: A) latent and parallel markets. B) existing and incipient markets. C) latent and incipient markets. D) existing and latent markets. E) incipient and existing markets. 53) Marketers must be aware […]

  21) In the capital and financial account, the largest category of international transactions is A) net interest. B) foreign investment in the United States. C) net transfers. D) exports and imports. E) statistical discrepancy. 22) When a German company purchases a U.S. company for $20 million, in the balance of payments the value of that transaction is recorded in the A) purchase account. B) […]

  71.Adecreaseinthebudgetdeficit a.makesinvestmentspendingfall. b.makesinvestmentspendingrise. c.doesnotaffectinvestmentspending. d.mayincrease,decrease,ornotaffectinvestmentspendingifprivatesavingdoesn’tchange. 72.Supposethegovernmentdeficitincreases,buttheinterestrateremainsthesame.Whichofthefollowingthingsmighthavehappenedsimultaneouslytokeepinterestratesthesame? a.Thegovernmentreducestheamountthatpeoplemayputintosavingsaccountsonwhichtheinterestistaxexempt. b.Becausetheyareoptimisticaboutthefutureoftheeconomy,firmsdesiretoborrowmoretopurchasephysicalcapital. c.Consumersdecidetodecreaseconsumptionandworkmore. d.Alloftheabovecouldexplainwhytheinterestratewouldbeunchanged. 73.Otherthingsthesame,ifthegovernmentincreasestransferpaymentstohouseholds,thentheeffectofthisonthegovernment’sbudget a.willmakeinvestmentrise. b.willmaketherateofinterestrise. c.willmakepublicsavingrise. d.Alloftheabovearecorrect. 74.Supposegovernmentexpendituresongoodsandservicesincrease,transfersareunchanged,andtaxesrisebylessthantheincreaseinexpenditures.Thesechangesinthegovernment’sbudgetcause a.boththeequilibriuminterestrateandtheequilibriumquantityofloanablefundstofall. b.boththeequilibriuminterestrateandtheequilibriumquantityofloanablefundstorise. c.theequilibriuminterestratetoriseandtheequilibriumquantityofloanablefundstofall. d.theequilibriuminterestratetofallandtheequilibriumquantityofloanablefundstorise. 75.Supposegovernmentexpendituresongoodsandservicesandnettaxesbothdecrease,andexpendituresfallbymorethannettaxes.Theeffectsofthesechangesonthebudgetdeficitcause a.boththeequilibriuminterestrateandtheequilibriumquantityofloanablefundstofall. b.boththeequilibriuminterestrateandtheequilibriumquantityofloanablefundstorise. c.theequilibriuminterestratetoriseandtheequilibriumquantityofloanablefundstofall. d.theequilibriuminterestratetofallandtheequilibriumquantityofloanablefundstorise. 76.Boliviahadasmallerbudgetdeficitin2003thanin2002.Otherthingsthesame,wewouldexpectthisreductioninthebudgetdeficittohave a.increasedbothinterestratesandinvestment. b.increasedinterestratesanddecreasedinvestment. c.decreasedinterestratesandincreasedinvestment. d.decreasedbothinterestratesandinvestment. 77.Supposeacountryhadasmallerincreaseindebtin2011thanithadin2010.Thenotherthingsthesame,wewouldexpect a.lowerinterestratesandinvestmentin2011thanin2010. b.lowerinterestratesandgreaterinvestmentin2011thanin2010. c.higherinterestratesandgreaterinvestmentin2011thanin2010. d.higherinterestratesandlowerinvestmentin2011thanin2010. 78.Supposethegovernmentranabudgetsurplusin2010andalargersurplusin2011.Theloanablefundsmodelwouldpredictthat,asaresultoftheincreaseinthesurplus, a.boththegovernmentdebtandinterestratesincreasedbetween2010and2011. b.boththegovernmentdebtandinterestratesdecreasedbetween2010and2011. c.thegovernmentdebtincreasedandinterestratesdecreasedbetween2010and2011. d.thegovernmentdebtdecreasedandinterestratesincreasedbetween2010and2011. 79.Crowdingoutoccurswheninvestmentdeclinesbecause a.abudgetdeficitmakesinterestratesrise. b.abudgetdeficitmakesinterestratesfall. c.abudgetsurplusmakesinterestratesrise. d.abudgetsurplusmakesinterestratesfall. 80.Crowdingoutoccurswhen a.investmentdeclinesbecauseabudgetdeficitmakesinterestratesrise. b.investmentdeclinesbecauseabudgetdeficitmakesinterestratesfall. c.investmentincreasesbecauseabudgetsurplusmakesinterestratesrise. d.investmentincreasesbecauseabudgetsurplusmakesinterestratesfall.