61.Examples of complementary protein combinations include all of the following except: a.pasta with tomato sauce. b.rice and black-eyed peas. c.whole-wheat cereal with almonds. d.peanut butter and jelly on whole-wheat bread.   62.When you do not eat enough protein: a.you may still be able to get an adequate nutrient intake. b.you will develop symptoms of malnutrition. c.your body will increase its synthesis of proteins. […]

    21) During which years, if any, did the country have a balanced budget? A) 2008 and 2009 B) 2012 only C) 2011 only D) 2010 and 2012 E) all except 2011         22) The above table gives the government outlays and tax revenues from 2008 through 2012 for two countries. In 2011 country A had a ________ and country B […]

    16.              Which of the following statements is false about earnings per share: A)is a required disclosure on the face of the income statement B)is a common size measure of a company’s earnings performance C)is the amount that each stockholder will receive as dividends that period D)reflects the amount of a company’s earnings belonging to each shareholder on a per share basis   17.              […]

  161.SupposethattheFederalreserveisconcernedabouttheeffectsoffallingstockpricesontheeconomy.Whatcoulditdo? a.buybondstoraisetheinterestrate b.buybondstolowertheinterestrate c.sellbondstoraisetheinterestrate d.sellbondstoraisetheinterestrate 162.WhentheFeddecreasesthemoneysupply,weexpect a.interestratesandstockpricestorise. b.interestratesandstockpricestofall. c.interestratestoriseandstockpricestofall. d.interestratestofallandstockpricestorise. 163.WhentheFedincreasesthemoneysupply,weexpect a.interestratesandstockpricestorise. b.interestratesandstockpricestofall. c.interestratestoriseandstockpricestofall. d.interestratestofallandstockpricestorise. 164.Changesintheinterestratehelpexplain a.onlytheslopeof,notshiftsofaggregatedemand. b.onlyshiftsof,nottheslopeofaggregatedemand. c.boththeslopeofandshiftsofaggregatedemand. d.neithertheslopenorshiftsofaggregatedemand. 165.Changesintheinterestrate a.shiftaggregatedemandwhethertheyarecausedbychangesinthepricelevelorbychangesinfiscalormonetarypolicy. b.shiftaggregatedemandiftheyarecausedbychangesinthepricelevel,butnotiftheyarecausedbychangesinfiscalormonetarypolicy. c.shiftaggregatedemandiftheyarecausedbyfiscalormonetarypolicy,butnotiftheyarecausedbychangesinthepricelevel. d.donotshiftaggregatedemand. 166.Becausetheliquidity-preferenceframeworkfocusesonthe a.shortrun,itassumesthepriceleveladjuststobringthemoneymarkettoequilibrium. b.shortrun,itassumestheinterestrateadjuststobringthemoneymarkettoequilibrium. c.longrun,itassumesthepriceleveladjuststobringthemoneymarkettoequilibrium. d.longrun,itassumestheinterestrateadjuststobringthemoneymarkettoequilibrium. 167.Accordingtothetheoryofliquiditypreference,iftheinterestraterises a.peoplewanttoholdmoremoney.Thisresponseisshownbymovingtothe rightalongthemoneydemandcurve. b.peoplewanttoholdmoremoney.Thisresponseisshownbyshiftingthemoneydemandcurveright. c.peoplewanttoholdlessmoney.Thisresponseisshownbymovingtotheleftalongthemoneydemandcurve. d.peoplewanttoholdlessmoney.Thisresponseisshownbyshiftingthemoneydemandcurveleft. 168.Accordingtothetheoryofliquiditypreference,ifoutputdecreases a.peoplewanttoholdmoremoney.Thisresponseisshownasamovementalongthemoneydemandcurve. b.peoplewanttoholdmoremoney.Thisresponseisshownasashiftofthemoneydemandcurve. c.peoplewanttoholdlessmoney.Thisresponseisshownasamovementalongthemoneydemandcurve. d.peoplewanttoholdlessmoney.Thisresponseisshownasashiftofthemoneydemandcurve. 169.IftheFederalReserveincreasesthemoneysupply,theninitiallythereisa a.shortageinthemoneymarket,sopeoplewillwanttosellbonds. b.shortageinthemoneymarket,sopeoplewillwanttobuybonds. c.surplusinthemoneymarket,sopeoplewillwanttosellbonds. d.surplusinthemoneymarket,sopeoplewillwanttobuybonds. 170.IftheFederalReservedecreasesthemoneysupply,theninitiallythereisa a.shortageinthemoneymarket,sopeoplewillwanttosellbonds. b.shortageinthemoneymarket,sopeoplewillwanttobuybonds. c.surplusinthemoneymarket,sopeoplewillwanttosellbonds. d.surplusinthemoneymarket,sopeoplewillwanttobuybonds.    

  11.Ifacompetitivefirmisselling500unitsofitsproductatapriceof$8perunitandearningapositiveprofit,then a.itsaveragerevenueisgreaterthan$8. b.itsmarginalrevenueislessthan$8. c.itstotalcostislessthan$4,000. d.Alloftheabovearecorrect. 12.FarmerMcDonaldsellswheattoabrokerinKansasCity,Missouri.Becausethemarketforwheatisgenerallyconsideredtobecompetitive,Mr.McDonaldmaximizeshisprofitbychoosing a.toproducethequantityatwhichaveragevariablecostisminimized. b.toproducethequantityatwhichaveragefixedcostisminimized. c.thequantityatwhichmarketpriceisequaltoMr.McDonald’smarginalcostofproduction. d.thequantityatwhichmarketpriceexceedsMr.McDonald’smarginalcostofproductionbythegreatestamount. 13.Mr.Rogerssellscoloredpencils.Thecolored-pencilindustryiscompetitive.Mr.Rogershiresabusinessconsultant  toanalyzehiscompany’sfinancialrecords.TheconsultantrecommendsthatMr.Rogersincreasehisproduction. a.totalrevenuesequalhistotaleconomiccosts. b.marginalrevenueexceedshistotalcost. c.marginalrevenueexceedshismarginalcost. d.marginalcostexceedshismarginalrevenue. 14.Kateisaprofessionaloperasingerwhogivesvoicelessons.Thevocal-musicindustryiscompetitive.Katehiresabusinessconsultanttoanalyzeherfinancialrecords.TheconsultantrecommendsthatKategivefewervoicelessons.TheconsultantmusthaveconcludedthatKate’s a.totalrevenuesexceedhertotalaccountingcosts. b.marginalrevenueexceedshertotalcost. c.marginalrevenueexceedshermarginalcost. d.marginalcostexceedshermarginalrevenue. 15.Lauraisagourmetchefwhorunsasmallcateringbusinessinacompetitiveindustry.Lauraspecializesinmakingweddingcakes.Laurasells20weddingcakespermonth.Hermonthlytotalrevenueis$5,000.Themarginalcostofmakingaweddingcakeis$300.Inordertomaximizeprofits,Laurashould a.makemorethan20weddingcakespermonth. b.makefewerthan20weddingcakespermonth. c.continuetomake20weddingcakespermonth. d.Wedonothaveenoughinformationtoanswerthequestion. 16.Lauraisagourmetchefwhorunsasmallcateringbusinessinacompetitiveindustry.Lauraspecializesinmakingweddingcakes.Laurasells20weddingcakespermonth.Hermonthlytotalrevenueis$5,000.Themarginalcostofmakingaweddingcakeis$200.Inordertomaximizeprofits,Laurashould a.makemorethan20weddingcakespermonth. b.makefewerthan20weddingcakespermonth. c.continuetomake20weddingcakespermonth. d.Wedonothaveenoughinformationtoanswerthequestion. 17.Robinownsahorsestablesandridingacademyandgivesridinglessonsforchildrenat“ponycamp.”Herbusinessoperatesinacompetitiveindustry.Robingivesridinglessonsto20childrenpermonth.Hermonthlytotalrevenueis$4,000.Themarginalcostofponycampis$100perchild.Inordertomaximizeprofits,Robinshould a.giveridinglessonstomorethan20childrenpermonth. b.giveridinglessonstofewerthan20childrenpermonth. c.continuetogiveridinglessonsto20childrenpermonth. d.Wedonothaveenoughinformationtoanswerthequestion. 18.Robinownsahorsestablesandridingacademyandgivesridinglessonsforchildrenat“ponycamp.”Herbusinessoperatesinacompetitiveindustry.Robingivesridinglessonsto20childrenpermonth.Hermonthlytotalrevenueis$4,000.Themarginalcostofponycampis$200perchild.Inordertomaximizeprofits,Robinshould a.giveridinglessonstomorethan20childrenpermonth. b.giveridinglessonstofewerthan20childrenpermonth. c.continuetogiveridinglessonsto20childrenpermonth. d.Wedonothaveenoughinformationtoanswerthequestion. 19.Robinownsahorsestablesandridingacademyandgivesridinglessonsforchildrenat“ponycamp.”Herbusinessoperatesinacompetitiveindustry.Robingivesridinglessonsto20childrenpermonth.Hermonthlytotalrevenueis$4,000.Themarginalcostofponycampis$250perchild.Inordertomaximizeprofits,Robinshould a.giveridinglessonstomorethan20childrenpermonth. b.giveridinglessonstofewerthan20childrenpermonth. c.continuetogiveridinglessonsto20childrenpermonth. d.Wedonothaveenoughinformationtoanswerthequestion. 20.Acompetitivefirmhasbeensellingitsoutputfor$20perunitandhasbeenmaximizingitsprofit,whichispositive.Then,thepricerisesto$25,andthefirmmakeswhateveradjustmentsarenecessarytomaximizeitsprofitatthenow-higherprice.Oncethefirmhasadjusted,its a.quantityofoutputishigherthanitwaspreviously. b.averagetotalcostishigherthanitwaspreviously. c.marginalrevenueishigherthanitwaspreviously. d.Alloftheabovearecorrect.    

  3.4   Specialization and Trade   1) If Wendy can produce more of all goods than Tommy in an hour, then A) Wendy has an absolute advantage in all goods. B) Wendy does not need to trade with Tommy in order to achieve the gains from trade. C) Wendy has a comparative advantage in all goods. D) Tommy has an absolute advantage in all goods. […]

  61.Which of the following activities is most likely to be considered ethical?   A. Locating highly polluting production plants in those countries that have lax pollution control laws B. Undertaking “social investments” in host countries C. Paying bribes to government officials in developing countries to secure a contract D. Polluting resources that are considered as global commons E. Stringently following the laws of a country even if they violate basic human […]

    11) If bonds with different maturities are perfect substitutes, then the ________ on these bonds must be equal. A) expected return B) surprise return C) surplus return D) excess return   12) If the expected path of one-year interest rates over the next five years is 4 percent, 5 percent, 7 percent, 8 percent, and 6 percent, then the expectations theory predicts that […]

  Figure 14-5     A few years ago Netflix (N) pioneered an online DVD rental service. Blockbuster (B), a brick and mortar DVD/video rental company, waited until Netflix had been in business for over a year before deciding whether to establish its own online rental service. At this point, Netflix had to decide whether or not to lower its subscription price in order to […]

  141) Suppose there is some unemployment in the economy and society decides that it wants more of one good. Which of the following statements is true? A) It is not possible to achieve this unless technology advances. B) It can increase output without giving up another good by employing more resources. C) It will have to increase resource supplies. D) It will have to […]