41) A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $75. Which of the following is correct? A) The firm is employing the profit-maximizing quantity of labor. B) Too much labor is currently employed and the firm will lay off some workers. C) Too few workers are currently employed and the […]

  61. Jones Manufacturing Inc.Jones Manufacturing Inc. incurred the following costs in November:  Direct labor$50,000 Advertising costs$  3,000 Indirect labor20,000 Factory rent10,000 Administrative salaries25,000 Factory depreciation6,000 Direct materials purchased23,000 Administrative rent5,000 Indirect materials used4,000 Administrative depreciation7,000 In addition, the following information is also available:   Beginning Ending Raw materials$  5,000 $  8,000 Work in process60,000 55,000 Finished goods17,250 9,200    Number of units produced20,000 units Number of units sold       (sales price of $25 per unit)21,400 […]

    11) Prices of California Merlot wine (assume that this is a normal good) have risen steadily in recent years. Over this same period, prices for French oak barrels used for wine storage have dropped and consumer incomes have risen. Which of the following best explains the rising prices of California Merlots? A) The supply curve for Merlot has shifted to the right while […]

  31.Alighthouseistypicallyconsideredtobeapublicgoodbecause a.theownerofthelighthouseisabletoexcludebeneficiariesfromenjoyingthelighthouse. b.thereisrarelyanotherlighthousenearbytoprovidecompetition. c.anearbyportauthoritycannotavoidpayingfeestothelighthouseowner. d.allpassingshipsareabletoenjoythebenefitsofthelighthousewithoutpaying. 32.Alighthousemightbeconsideredaprivategoodif a.thereisasecondlighthousenearby,thuspreventingamonopoly. b.theownerofthelighthouseisabletoexcludebeneficiariesfromreceivingthebenefitsofthelighthouse. c.shipsareabletoenjoythebenefitsofthelighthousewithoutpayingforthebenefit. d.anearbyportauthorityisabletoavoidpayinganyfeestothelighthouseowner. 33.Whichofthefollowingisanexampleofthefree-riderproblem? a.BothZoeandZachreceivelow-costdentalcareatthelocaldentalschool,soneitherofthempaysthefullcostofthecare. b.Alfredreceivesafreelunchfromthelocal”MealsonWheels”programbecauseofhislowmonthlyincome. c.BruceownsBuster,alargedogwhobarkswheneveranyonewalksnearhishouse.BettylivesnexttoBruce,andBuster’sbarkingcanbeheardwheneveranyonewalksnearherhouse,too.Thus,BettyreceivesfreeprotectionfromburglarsbecauseofBuster’sbarking. d.Sampurchasesaburgeratafastfoodrestaurantandgetsasecondburgerfreebecausetherestaurantishavingabuyone,getonefreesale. 34.Nationaldefenseisaclassicexampleofapublicgoodbecause a.thereisnomarketforprivatesecurityservices. b.itisdifficulttoexcludepeoplefromreceivingthebenefitsfromnationaldefenseonceitisprovided. c.everyoneagreesthatsomelevelofnationaldefenseisimportant,butonlythegovernmentknowstheoptimalamount. d.therearenoprivatefirmswillingtosupplydefensegoodssuchastanksandweapons. 35.ThenationaldefenseoftheUnitedStatesisnotrivalbecause a.myenjoymentofthenationaldefensedoesnotdiminishyourenjoymentofthenationaldefenseoftheUnitedStates. b.myenjoymentofthenationaldefensedoesdiminishyourenjoymentofthenationaldefenseoftheUnitedStates. c.oncethenationisdefended,itisimpossibletopreventanysinglepersonfromenjoyingthebenefitofthisdefense. d.oncethenationisdefended,itispossibletopreventanysinglepersonfromenjoyingthebenefitofthisdefense. 36.ThenationaldefenseoftheUnitedStatesisnotexcludablebecause a.myenjoymentofthenationaldefensedoesnotdiminishyourenjoymentofthenationaldefenseoftheUnitedStates. b.myenjoymentofthenationaldefensedoesdiminishyourenjoymentofthenationaldefenseoftheUnitedStates. c.oncethenationisdefended,itisimpossibletopreventanysinglepersonfromenjoyingthebenefitofthisdefense. d.oncethenationisdefended,itispossibletopreventanysinglepersonfromenjoyingthebenefitofthisdefense. 37.Itiscommonlyarguedthatnationaldefenseisapublicgood.Nevertheless,theweaponsusedbytheU.S.militaryareproducedbyprivatefirms.Wecanconcludethat a.resourceswouldbeusedmoreefficientlyifthegovernmentproducedtheweapons. b.resourceswouldbeusedmoreefficientlyifprivatefirmsprovidednationaldefense. c.weaponsarerivalinconsumptionandexcludable,butnationaldefenseisnotrivalinconsumptionandnotexcludable. d.nationaldefenseisrivalinconsumptionandexcludable,butweaponsarenotrivalinconsumptionandnotexcludable. 38.Nationaldefenseisprovidedbythegovernmentbecause a.itisimpossibleforprivatemarketstoproducepublicgoods. b.productsprovidedbythegovernmentareproducedmoreefficiently. c.free-ridersmakeitdifficultforprivatemarketstosupplythesociallyoptimalquantity. d.publicgoodsincreasegovernmentrevenues. 39.Eveneconomistswhoadvocatesmallgovernmentagreethat a.nationaldefenseisapublicgoodandthatthegovernmentshouldprovideit. b.nationaldefenseisacommonresourceandthatthegovernmentshouldprovideit. c.nationaldefenseisapublicgood,butmanyofthembelievethatitshouldbeprovidedbyprivatefirmsratherthanbythegovernment. d.nationaldefenseisacommonresource,butmanyofthembelievethatitshouldbeprovidedbyprivatefirmsratherthanbythegovernment. 40.Knowledgeisanexampleofa a.publicgood. b.privategood. c.commonresource. d.clubgood.    

  81.Which of the following is a benefit of lowering the barriers to international trade?   A. Domestic industries are better protected from foreign competition. B. Firms can view the world, rather than a single country, as their market. C. The lowering of barriers promotes communism across the globe. D. The lowering of barriers puts a brake on globalization of both markets and production. E. The economies of the members of the WTO become […]

    51. Johnson Manufacturing anticipates incurring $500,000 in overhead costs this year. After implementing activity-based costing (ABC), the company’s controller identified the following related information:  Activity Allocation Base Proportion of Overhead Cost Purchasing Number of purchase orders 20% Machine setups Number of setups 15% Production Number of machine hours 65%       The number of activities expected are as follows:  Total number of purchase […]

  71. (p. 180) Meteora Inc. is planning to enter the African market through its mobile phone manufacturing operations in Kenya. Which of the following could favor a positive relation with the host country?  A. Meteora Inc. plans to use their manufacturing unit as an export base. B. Meteora Inc. plans to import phone components from China. C. Meteora has an R & D centre in California and all technology will […]

1.              Identify which image in the figure represents the reactants and which image therefore represents the products in the reaction between xenon gas and fluorine gas to form xenon tetrafluoride gas. A)upper left image = reactants, lower right image = products B)upper left image = reactants, lower left image = products C)upper left image = reactants, upper right image = products D)upper right image = […]

  31. During 2014, Norman contributed investment property held for over one year to the Mary Ann Partnership for a 40 percent interest in partnership capital and profits. His tax basis in the property contributed was $8,000, and the property had a fair market value of $10,000 on the date of the contribution to the partnership. What gain or loss should Norman report as a result […]

  31) When the demand curve shifts rightward and the market moves to a new equilibrium, then the A) supply increases. B) supply decreases. C) quantity supplied increases. D) quantity supplied decreases. E) price falls to restore the equilibrium. 32) Suppose the equilibrium quantity of movie tickets is 1000. If the demand curve shifts ________, the equilibrium quantity of movie tickets will ________. A) rightward; […]