111.Duringacertainyear,thenominalinterestratewas8percent,therealinterestratewas3percent,andtheCPIwas176.7atthebeginningoftheyear.TheCPIattheendoftheyearwas a.196.1. b.185.5. c.168.3. d.159.2. 112.Duringacertainyear,thenominalinterestratewas7percent,therealinterestratewas4percent,andtheCPIwas198.3attheendoftheyear.TheCPIatthebeginningoftheyearwas a.204.2 b.192.5 c.178.6 d.220.1 113.Duringacertainyear,theconsumerpriceindexincreasedfrom120to132andthepurchasingpowerofaperson’sbankaccountincreasedby4percent.Forthatyear, a.thenominalinterestratewas6percent. b.thenominalinterestratewas14percent. c.theinflationratewas12percent. d.theinflationratewas9percent. 114.TheCPIwas220in2012and231in2013.Phil borrowedmoneyin 2012andrepaid theloanin 2013.Ifthe nominalinterestrateontheloanwas10percent,thentherealinterestratewas a.-5percent. b.-1percent. c.5percent. d.3.2percent. 115.Supposethatoverthepastyear,therealinterestratewas3percentandtheinflationratewas1percent.Itfollowsthat a.thedollarvalueofsavingsincreasedat2percent,andthepurchasingpowerofsavingsincreasedat3percent. b.thedollarvalueofsavingsincreasedat2percent,andthepurchasingpowerofsavingsincreasedat4percent. c.thedollarvalueofsavingsincreasedat4percent,andthepurchasingpowerofsavingsincreasedat2percent. d.thedollarvalueofsavingsincreasedat4percent,andthepurchasingpowerofsavingsincreasedat3percent. 116.Supposethatoverthepastyear,therealinterestratewas6percentandtheinflationratewas-2percent.Itfollowsthat a.thedollarvalueofsavingsincreasedat4percent,andthepurchasingpowerofsavingsincreasedat6percent. b.thedollarvalueofsavingsincreasedat4percent,andthepurchasingpowerofsavingsincreasedat8percent. c.thedollarvalueofsavingsincreasedat8percent,andthepurchasingpowerofsavingsincreasedat4percent. d.thedollarvalueofsavingsincreasedat8percent,andthepurchasingpowerofsavingsincreasedat6percent. 117.Supposethatoverthepastyear,therealinterestratewas5percentandtheinflationratewas3percent.Itfollowsthat a.thedollarvalueofsavingsincreasedat5percent,andthepurchasingpowerofsavingsincreasedat2percent. b.thedollarvalueofsavingsincreasedat5percent,andthepurchasingpowerofsavingsincreasedat8percent. c.thedollarvalueofsavingsincreasedat8percent,andthepurchasingpowerofsavingsincreasedat2percent. d.thedollarvalueofsavingsincreasedat8percent,andthepurchasingpowerofsavingsincreasedat5percent. 118.Supposethatoverthepastyear,therealinterestratewas6percentandtheinflationratewas4percent.Itfollowsthat a.thedollarvalueofsavingsincreasedat6percent,andthepurchasingpowerofsavingsincreasedat2percent. b.thedollarvalueofsavingsincreasedat6percent,andthepurchasingpowerofsavingsincreasedat10percent. c.thedollarvalueofsavingsincreasedat10percent,andthepurchasingpowerofsavingsincreasedat2percent. d.thedollarvalueofsavingsincreasedat10percent,andthepurchasingpowerofsavingsincreasedat6percent. 119.Supposethatoverthepastyear,thenominalinterestratewas5percent,theCPIwas150.3attheendoftheyear,andtheCPIwas144.2atthebeginningoftheyear.Itfollowsthat a.thedollarvalueofsavingsincreasedat5percent,andthepurchasingpowerofsavingsincreasedat0.8percent. b.thedollarvalueofsavingsincreasedat5percent,andthepurchasingpowerofsavingsincreasedat9.2percent. c.thedollarvalueofsavingsincreasedat0.8percent,andthepurchasingpowerofsavingsincreasedat5percent. d.thedollarvalueofsavingsincreasedat9.2percent,andthepurchasingpowerofsavingsincreasedat5percent. 120.Supposethatoverthepastyear,therealinterestratewas3percent,theCPIwas126.2atthebeginningoftheyear,andtheCPIwas129.5attheendoftheyear.It followsthat a.thedollarvalueofsavingsincreasedat5.6percent,andthepurchasingpowerofsavingsincreasedat3percent. b.thedollarvalueofsavingsincreasedat0.4percent,andthepurchasingpowerofsavingsincreasedat3percent. c.thedollarvalueofsavingsincreasedat3percent,andthepurchasingpowerofsavingsincreasedat5.6percent. d.thedollarvalueofsavingsincreasedat3percent,andthepurchasingpowerofsavingsincreasedat0.4percent.    

  31) The figure above shows the supply curve for soda. The market price is $1.00 per soda. The marginal cost of the 20,000th soda is A) $0.00. B) $0.50. C) $1.00. D) more than $1.00. E) None of the above answers is correct. 32) The figure above shows the supply curve for soda. The market price is $1.00 per soda. The ________ price that […]

  14.3   Explaining the Existence of Unemployment   1) Suppose the wage rate in the labor market is $20 and the demand for labor increases. If wages are sticky A) unemployment decreases. B) unemployment increases. C) unemployment stays the same. D) wages decrease to eliminate the surplus.   2) Suppose the equilibrium wage rate in the labor market is $20 and the demand for labor […]

  31) Instead of studying for an additional two hours for the economics final, Leann decides to watch a movie. Leann is making A) a decision that does not involve an opportunity cost. B) a rational decision if her marginal cost from the movie is greater than her marginal benefit. C) a rational decision if her marginal benefit from the movie is greater than her […]

    41. A company’s manager estimates that in the upcoming year, increasing advertising costs by $25,000 will cause sales revenue to increase by $60,000. If the company’s contribution margin ratio is 35%, what will be overall effect on net income? A. Net income will increase by $12,250.B. Net income will increase by $29,750.C. Net income will increase by $35,000.D. Net income will decrease by $4,000.   42. A company’s manager estimates […]

      41) The above figure shows the market for 2 bedroom town homes in San Diego. If a rent ceiling is set at $1,000 per month then there is a A) surplus equal to 150,000 town homes. B) shortage equal to 100,000 town homes. C) surplus equal to 100,000 town homes. D) shortage equal to 150,000 town homes. E) shortage equal to 250,000 […]

  18.5   Integrative Questions 1) Assume that the state of Missouri decided to place a tariff on every product produced outside the state in an effort to increase the state’s revenue and increase employment in the state. If Missouri did so, A) the state’s total output would definitely increase. B) workers with jobs in new firms replacing out-of-state imports would earn high income. C) the […]

  91.The failure to find a strong link between relative inflation rates and exchange rate movements has been referred to as the _____.   A. currency crisis B. banking crisis C. purchasing power parity puzzle D. bandwagon effect E. foreign exchange risk 92.Which of the following is a reason for the failure of the purchasing power parity (PPP) theory to predict exchange rates accurately?   A. It assumes away transportation costs and […]

  41. Ellen supports her family as a self-employed attorney. She reports $90,000 of income on her Schedule C and pays $8,000 for health insurance for her family, $2,500 for dental insurance, $4,000 for health insurance for her 23-year-old daughter who is no longer a dependent, and $3,000 for disability insurance for herself. What is Ellen’s self-employed health insurance deduction? a. $8,000 b. $10,500 c. $12,000 d. $14,500 e. $13,500 42. What […]

  111.During 2013, Anhover Wedding Planners applied overhead using a job-order costing system at a rate of $3.25per direct labor hour. Estimated direct labor hours totaled220,000 and estimated overhead was $715,000 for the year.Actual direct labor hours for 2013totaled 215,000 and actual overhead was $702,000.What is the amount of under or over applied overhead for the year? A.$13,000 overapplied B.$13,000 underapplied C.$16,250underapplied D.$3,250 underapplied   […]