51.Which of the following is true with regard to an economic union?   A.There are restrictions on immigration, emigration, or cross-border flows of capital among member-countries. B.It entails less economic integration and cooperation than a common market. C.It involves the free flow of products and factors of production among member-countries. D.It is defined as a central political apparatus coordinates the economic, social, and foreign policy of […]

  81) The cartelization of an industry with a homogeneous product usually means that A) member firms have agreed to cooperate in reducing costs. B) member firms have agreed to reduce their joint output. C) the demand curve facing the industry must be linear. D) the demand curve facing the industry must be elastic. E) member firms have agreed to reduce investment. 82) One of […]

    21.Which one of the following is consistent with a company recording a large operating loss but still having healthy cash flows from operations? a.A large amount of depreciation and/or amortization expense b.An increase in accounts receivable and inventory c.A decrease in accounts payable d.All sales are on a cash basis.       22.Which one of the following is consistent with a company […]

    11.Kemp Clothing has cost of goods sold of $14,000 with beginning and ending inventories of $4,000 and $2,000, respectively. Purchases during the period are: a.$ 8,000. b.$ 9,000. c.$10,000. d.$11,000. e.$12,000.   Solution:$14,000 + $2,000 ? $4,000 = $12,000     12.Which one of the following expenditures should not be included in the cost of inventory? a.Purchase cost b.Transportation-in c.Packaging cost d.Capitalized equipment […]

  121.Ifamarketisallowedtomovefreelytoitsequilibriumpriceandquantity,thenanincreaseinsupplywill a.increaseconsumersurplus. b.reduceconsumersurplus. c.notaffectconsumersurplus. d.Anyoftheabovearepossible. 122.AsimultaneousincreaseinboththedemandforMP3playersandthesupplyofMP3playerswouldimplythat a.boththevalueofMP3playerstoconsumersandthecostofproducingMP3playershasincreased. b.boththevalueofMP3playerstoconsumersandthecostofproducingMP3playershasdecreased. c.thevalueofMP3playerstoconsumershasdecreased,andthecostofproducingMP3playershasincreased. d.thevalueofMP3playerstoconsumershasincreased,andthecostofproducingMP3playershasdecreased. 123.Tomatosauceandspaghettinoodlesarecomplementarygoods.Adecreaseinthepriceoftomatoeswill a.increaseconsumersurplusinthemarketfortomatosauceanddecreaseproducersurplusinthemarketforspaghettinoodles. b.increaseconsumersurplusinthemarketfortomatosauceandincreaseproducersurplusinthemarketforspaghettinoodles. c.decreaseconsumersurplusinthemarketfortomatosauceandincreaseproducersurplusinthemarketforspaghettinoodles. d.decreaseconsumersurplusinthemarketfortomatosauceanddecreaseproducersurplusinthemarketforspaghettinoodles. 124.Hotdogsandhotdogbunsarecomplements.Anincreaseinthepriceofflourusedtomakehotdogsbunswill a.increaseconsumersurplusinthemarketforhotdogbunsanddecreaseproducersurplusinthemarketforhotdogs. b.increaseconsumersurplusinthemarketforhotdogsandincreaseproducersurplusinthemarketforhotdogbuns. c.decreaseconsumersurplusinthemarketforhotdogbunsandincreaseproducersurplusinthemarketforhotdogs. d.decreaseconsumersurplusinthemarketforhotdogbunsanddecreaseproducersurplusinthemarketforhotdogs. 125.Steakandchickenaresubstitutes.Asharpreductioninthesupplyofsteakwould a.increaseconsumersurplusinthemarketforsteakanddecreaseproducersurplusinthemarketforchicken. b.increaseconsumersurplusinthemarketforsteakandincreaseproducersurplusinthemarketforchicken. c.decreaseconsumersurplusinthemarketforsteakandincreaseproducersurplusinthemarketforchicken. d.decreaseconsumersurplusinthemarketforsteakanddecreaseproducersurplusinthemarketforchicken. 126.Cornchipsandpotatochipsaresubstitutes.Goodweatherthatsharplyincreasesthecornharvestwould a.increaseconsumersurplusinthemarketforcornchipsanddecreaseproducersurplusinthemarketforpotatochips. b.increaseconsumersurplusinthemarketforcornchipsandincreaseproducersurplusinthemarketforpotatochips. c.decreaseconsumersurplusinthemarketforcornchipsandincreaseproducersurplusinthemarketforpotatochips. d.decreaseconsumersurplusinthemarketforcornchipsanddecreaseproducersurplusinthemarketforpotatochips. 127.PlayStationsandPlayStationgamesarecomplementarygoods.AtechnologicaladvanceintheproductionofPlayStationswill a.increaseconsumersurplusinthemarketforPlayStationsanddecreaseproducersurplusinthemarketforPlayStationgames. b.increaseconsumersurplusinthemarketforPlayStationsandincreaseproducersurplusinthemarketforPlayStationgames. c.decreaseconsumersurplusinthemarketforPlayStationsandincreaseproducersurplusinthemarketforPlayStationgames. d.decreaseconsumersurplusinthemarketforPlayStationsanddecreaseproducersurplusinthemarketforPlayStationgames. 128.Ifthecurrentallocationofresourcesinthemarketforhammersisinefficient,thenitmustbethecasethat a.producersurplusexceedsconsumersurplusinthemarketforhammers. b.consumersurplusexceedsproducersurplusinthemarketforhammers. c.thesumofconsumersurplusandproducersurpluscouldbeincreasedbymovingtoadifferentallocationofresources. d.thecoststhatsellersofhammersareincurringcouldbereducedbymovingtoadifferentallocationofresources. 129.Ifthecurrentallocationofresourcesinthemarketforwallpaperisefficient,thenitmustbethecasethat a.producersurplusequalsconsumersurplusinthemarketforwallpaper. b.themarketforwallpaperisinequilibrium. c.onthelastunitofwallpaperthatwasproducedandsold,thevaluetobuyersexceededthecosttosellers. d.Alloftheabovearecorrect. 130.Fivehundred units of goodxarecurrentlyboughtandsold.Themarginalbuyeriswillingtopay$40forthe500thunit,andthecosttothemarginalselleris $35forthe500thunit a.theequilibrium price of goodxissomewherebetween$35and$40. b.theequilibrium quantity ofgoodxexceeds500units. c.500unitsisnotanefficientquantityofgoodx. d.Alloftheabovearecorrect.    

  15.2   Short-Run and Long-Run Phillips Curves 1) The curve that shows the relationship between inflation and unemployment when the economy is at full employment is the A) short-run Phillips curve. B) long-run Phillips curve. C) long-run Okun’s curve. D) aggregate demand curve. E) aggregate supply curve. 2) In the long run, the unemployment rate A) is zero. B) is equal to the natural unemployment […]

  91) Refer to Table 6-3.  If the price of a 9-hole round of golf is $19, then Andrew will play ________ rounds per month. A) 2 B) 3 C) 4 D) 5 E) 6 or more 92) Refer to Table 6-3.  If the price of a 9-hole round of golf is $9, then Andrew will play ________ times per month. A) 2 B) 3 […]

        11) The table gives data for a nation. What is the amount of the country’s GDP? A) $6,000 billion B) $6,200 billion C) $6,600 billion D) $6,900 billion E) $5,800 billion 12) The table gives data for a nation. The value of the country’s net exports of goods and services shows that the country’s A) value of its exports exceeded the […]

  1. Activity-based costing is best suited for which type of cost?  A. Direct materials B. Direct labor C. Manufacturing overhead D. Administrative costs   2. As companies experience a shift from labor-intensive operations to machine-automated operations, which of the following costs becomes more difficult to trace to products?  A. Administrative costs B. Direct labor costs C. Direct material costs D. Overhead costs   3. Traditional overhead allocation methods as opposed to activity-based allocation methods work […]

  7.4   Chapter Figures   The figure above shows the supply and demand curves in the market for rental housing. A rent ceiling is set at $400 per month.   1) In the figure above, with the rent ceiling the quantity of housing supplied is ________ units, the quantity demanded is ________ units, and the quantity rented is ________ units. A) 3,000; 6,000; 3,000 B) […]