51. In a summary cash budget, the total cash available is calculated by: A. adding the cash receipts and deducting the cash disbursements from the beginning cash balance.B. adding the cash receipts to the beginning cash balance.C. adding the cash receipts and borrowings to the beginning cash balance.D. adding the cash balance before borrowing to interest on line of credit.   52. Cash outflows for overhead expenditures is shown on: A. the materials […]

  61.Which of the following is a function of an export management company?  A. It starts exporting operations for a firm with the understanding that the firm will take over operations after they are well established. B. It coordinates the Export Legal Assistance Network, a nationwide group of international trade attorneys. C. It oversees volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses. D. It collects […]

41) The above figure shows the U.S. market for replacement cell phone batteries. With free trade, U.S. production is equal to ________ batteries per year. When a $2 tariff is in place, U.S. production is equal to ________ batteries per year. A) 100,000; 300,000 B) 100,000; 500,000 C) 300,000; 100,000 D) 300,000; 500,000 E) 900,000; 700,000 42) The above figure shows the U.S. market for […]

  88.Which of the following is specifically identified as a strategy to improve communication across the organizational hierarchy, and not just at a micro-level?  A.Filtering B.Buffering C.Encouraging an active grapevine D.Open workspace design E.Use of jargon 89.Research suggests that effective workspace design mainly balances the trade-off between:  A.social interaction and emotional contagion. B.verbal and nonverbal communication. C.employee privacy and social interaction. D.information overload and information […]

  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 the […]

  21. Howard Inc. provides temporary clerical services to local businesses. The company has determined that total costs for a given month can be predicted by using the following formula:Total costs = $2,500 + $20xwhere “x” equals total direct labor hours for the month. If total direct labor hours for June are expected to be 600, what are total costs expected to be? A. $  9,500B. $14,500C. $12,000D. $  2,520   […]

  71.Thecommercialvalueofivoryisathreattotheelephant,butthecommercialvalueofbeefisaguardianofthecow.Thisisbecause a.thecowisraisedindevelopedcountries,whiletheelephantlivesprimarilyinless-developedcountries. b.cowsareprivategoods,whileelephantstendtoroamfreelywithoutowners. c.cowsandelephantsarepublicgoods,butivoryisnonrival. d.ivoryisnonrivalandnonexclusive,butbeefisrivalandexclusive. 72.Whyisthecommercialvalueofivoryathreattotheelephant,whilethecommercialvalueofbeefisthecow’sguardian? a.ElephantsliveinAfrica,whereascowsliveintheUnitedStates. b.Elephantsareacommonresource. c.Cowsareacommonresource. d.Cowsareapublicgood. 73.Whyhasthevalueofivorythreatenedtheextinctionoftheelephant,whereasthevalueofbeefhasenhancedthesurvivalofthecow? a.Cowsareacommonresource,whereaselephantsareownedbygovernments. b.Elephantsarelargerthancows,requiringmoreeconomicresources. c.ElephantsliveinAfrica,whereeconomicresourcesarescarce. d.Elephantsareacommonresource,whereascowsareprivatelyowned. 74.Manyspeciesofanimalsarecommonresources,andmanymustbeprotectedbylawtokeepthemfromextinction. a.Cowsreproduceatahighrateandhaveadaptedwelltotheirenvironment. b.Publicpoliciesprotectcowsfrompredatorsanddiseases. c.Cowsareprivatelyowned,whereasmanyendangeredspeciesareownedbynoone. d.Thereisanaturalecologicalbalancebetweenthebirthrateofcowsandhumanconsumption. 75.ElephantpopulationsinsomeAfricancountrieshavestartedtorisebecause a.environmentalistshavedevelopedeffectiveeducationalcampaigns. b.thevalueofivoryhasdecreased. c.someelephantshavebeenmadeaprivategood,andpeopleareallowedtokillelephantsontheirownproperty. d.regulationsarebeingenforcedmoreforcefully. 76.ItiscommonknowledgethatmanyU.S.nationalparkshavebecomeoverused.Onepossiblesolutiontothisproblemisto a.increaseentrancefees. b.decreasecampingpermitfees. c.requireallvisitorstoregisteruponenteringthepark. d.sellthelandthattheparkscurrentlyoccupy. 77.Onholidayweekendsthousandsofpeoplepicnicinstateparks.Somepicnicareasbecomesoovercrowdedthebenefitorvalueofpicnickingdiminishestozero.SupposethattheMinnesotaStateParkServiceinstitutesavariablefeestructure.Onweekdayswhenthepicnicareasgetlittleuse,thefeeiszero.Onnormalweekends,thefeeis$8perperson.Onholidayweekends,thefeeis$14perperson.Thefeesystemcorrectsaproblemknownasthe a.Coasetheorem. b.freeriderproblem. c.TragedyoftheCommons. d.publicgoodsproblem. 78.CongressmanSmithandCongresswomanJohnsonbothconsiderthemselvesadvocatesforthenationalparksandareintroducingdifferentbillsdesignedtobenefittheparks.CongressmanSmith’sbillcallsforanincreaseintheentrancefees.CongresswomanJohnson’sbillcallsforadecreaseintheentrancefees.Which of the bills would bemoreeffectiveatensuringthequalityofthenationalparks? a.CongressmanSmith’sbillbecauseitwillreducetheoveruseoftheparks b.CongresswomanJohnson’sbillbecausemorevisitorsmeansmorecitizenswillvalueandcarefortheparks c.Bothbillswouldbeequallyeffective. d.Neitherbillwouldbeeffective. 79.Ninefriendswholovethebeachdecidetopooltheirfinancialresourcesandequallysharethecostofaone-weekhouserentalonNantucket.Supposethatthebeachoutsideofthehousebecomesmorecongestedwhenthenineadditionalpeoplejointheotherbeachgoers.Whichofthefollowingstatementsisnotcorrect? a.Useofthebeachbytheninenewbeachgoerswillyieldanegativeexternality. b.Thetowncanreducethecongestionexternalitybyraisingthefeetoaccessthebeach. c.Anincreaseinthefeetoaccessthebeachcouldbeviewedasacorrectivetaxontheexternalityofcongestion. d.Eachoftheninefriendswouldhavebeenbetteroffstayingathome. 80.Tenfriendswholovetoskidecidetopooltheirfinancialresourcesandequallysharethecostofaone-weektime-sharecondominiuminAlta,Utah.Supposethattheliftlinesattheskiresortbecomemorecongestedwhenthetenadditionalpeoplestarttoski.Whichofthefollowingstatementsisnotcorrect? a.Useoftheskiresortbythetennewskierswillyieldanegativeexternality. b.Theskiresortcanreducethecongestionexternalitybyraisingliftticketprices. c.Anincreaseinliftticketpricescouldbeviewedasacorrectivetaxontheexternalityofcongestion. d.Eachofthetenfriendswouldhavebeenbetteroffstayingathome.    

    31) When large firms in oligopoly markets cut their prices A) rival firms will also cut their prices to avoid losing sales. B) rival firms will not change their prices because most of their customers have signed contracts that commit them to doing business with the same firms for the life of their contracts. C) we don’t know for sure how rival firms […]

  21) If firms in monopolistic competition are making economic profits, eventually A) they shut down. B) they exit the industry. C) the market turns into a monopoly. D) new firms enter the industry. E) the firms in the market increase their production so that their economic profit disappears.   22) If a firm in monopolistic competition is making an economic profit, A) it is […]

  31) Refer to Table 8-2. If capital costs $6 per unit and labour costs $4 per unit, which production method minimizes the cost of producing 1000 toys per day? A) method B B) method C C) method D D) method E E) method F 32) Refer to Table 8-2. Suppose capital costs $6 per unit and labour costs $4 per unit and the firm […]