91) Refer to Table 2-16. What is Finland’s opportunity cost of producing one board foot of lumber? A) 0.25 cell phones B) 4 cell phones C) 12 cell phones D) 16 cell phones 92) Refer to Table 2-16. Estonia has a comparative advantage in the production of A) both products. B) lumber. C) cell phones. D) neither product. 93) Refer to Table 2-16. Finland […]

    41.Characterize EACH of the three given statements as being TRUE or FALSE and then indicate the collective true-false status of the statements using the choices: (1) The two members of a Bronsted-Lowry conjugate acid-base pair will always differ from each other by one unit of charge. (2) An equivalent of an ion is always the charge on the ion divided by two. (3) […]

    31) When money is used to compare the relative price of a burrito and a taco, money is being used as a A) medium of exchange. B) store of value. C) measurement of inflation. D) unit of account. E) token of bartering. Answer:  D Topic:  Functions of money, unit of account Skill:  Level 2: Using definitions Section:  Checkpoint 11.1 Status:  NAU 32) The […]

    94. High dividends may be used as __________ of a firm’s __________.  A. an indicator; high capital gains B. an indicator; tax liability C. a signal; poor prospects D. a signal; good prospects 95. Of the following, who has tax benefits for preferring dividends?  A. Individual investors B. Corporations C. Financial institutions D. Banks 96. Which of the following statements is correct about investors in Ajax Industries, which has just announced a three-for-one stock […]

  2.3   The Circular Flows 1) ________ the owners of the factors of production, while ________ what amounts of those factors to hire. A) Households are; firms determine B) Households are; the government determines C) The government is; firms determine D) Firms are; households determine E) Firms are; the government determines 2) What two groups of decision makers are represented in the basic circular flow […]

    21) A perfectly competitive wheat farmer in a constant-cost industry produces 1,000 bushels of wheat at a total cost of $50,000. The prevailing market price is $48. What will happen to the market price of wheat in the long run? A) The price remains constant at $48. B) The price falls below $48. C) The price rises above $48. D)  There is insufficient […]

  3.1  Two Kinds of Optimization: A Matter of Focus 1) Making choices by selecting the best feasible option, given the available information is referred to as: A) delegation. B) imposition. C) actualization. D) optimization. 2) Which of the following statements is true? A) It is easier for a person to optimize when he has less information. B) Optimization implies choosing the best option from […]

  59.ACME Software Inc. has developed a training program to make employees more aware of how their job performance affects customers and other employees within the organization and to inform them of the changing market conditions. This training program relates most closely to which of the following concepts?  A.Contingency anchor B.Grounded theory C.Open systems D.Virtual teams E.Telecommuting 60.A firm has good associations with its customers, […]

  12) In a housing market with no rent ceilings, the equilibrium rent is that for which the quantity of apartments demanded A) equals the quantity supplied. B) is greater than the quantity supplied. C) is less than the quantity supplied. D) might be greater than, equal to, or less than the quantity supplied depending on whether the supply curve is upward sloping, horizontal, or […]

  51.Thequantityofaggregategoodsandservicesdemandedriseswhenthe a.pricelevelrises,becausetheinterestraterises. b.pricelevelrises,becausetheinterestratefalls. c.pricelevelfalls,becausetheinterestraterises. d.pricelevelfalls,becausetheinterestratefalls. 52.Inthecontextoftheaggregate-demandcurve,theinterest-rateeffectreferstotheideathat,whenthepricelevelincreases, a.therealvalueofmoneydecreases;inturn,therealvalueofthedollarincreasesinforeignexchangemarkets,whichdecreasesnetexports. b.therealvalueofmoneydecreases;inturn,interestratesincrease,whichdecreasesnetexports. c.householdsincreasetheirholdingsofmoney;inturn,interestratesdecrease,whichreducesspendingoninvestmentgoods. d.householdsincreasetheirholdingsofmoney;inturn,interestratesincrease,whichreducesspendingoninvestmentgoods. 53.Asthepricelevelrises,theexchangerate a.falls,soexportsriseandimportsfall. b.falls,soexportsfallandimportsrise. c.rises,soexportsriseandimportsfall. d.rises,soexportsfallandimportsrise. 54.Otherthingsthesame,ifthepricelevelrises,thendomesticinterestrates a.rise,sodomesticresidentswillwanttoholdmoreforeignbonds. b.rise,sodomesticresidentswillwanttoholdfewerforeignbonds. c.fall,sodomesticresidentswillwanttoholdmoreforeignbonds. d.fall,sodomesticresidentswillwanttoholdfewerforeignbonds. 55.Otherthingsthesame,ifthepricelevelfalls,domesticinterestrates a.rise,sodomesticresidentswillwanttoholdmoreforeignbonds. b.rise,sodomesticresidentswillwanttoholdfewerforeignbonds. c.fall,sodomesticresidentswillwanttoholdmoreforeignbonds. d.fall,sodomesticresidentswillwanttoholdfewerforeignbonds. 56.Asthepricelevelrises,theinterestrate a.falls,sothesupplyofdollarsinthemarketforforeigncurrencyexchangeshiftsleft. b.falls,sothesupplyofdollarsinthemarketforforeigncurrencyexchangeshiftsright. c.rises,sothesupplyofdollarsinthemarketforforeigncurrencyexchangeshiftsleft. d.rises,sothesupplyofdollarsinthemarketforforeigncurrencyexchangeshiftsright. 57.Otherthingsthesame,ifthepricelevelfalls,people a.increaseforeignbondpurchases,sothesupplyofdollarsinthemarketforforeign-currencyexchangeincreases. b.increaseforeignbondpurchases,sothesupplyofdollarsinthemarketforforeign-currencyexchangedecreases. c.decreaseforeignbondpurchases,sothesupplyofdollarsinmarketforforeign-currencyexchangeincreases. d.decreaseforeignbondpurchases,sothesupplyofdollarsinthemarketforforeign-currencyexchangedecreases. 58.Otherthingsthesame,ifthepricelevelfalls,people a.increaseforeignbondpurchases,sothedollarappreciates. b.increaseforeignbondpurchases,sothedollardepreciates. c.increasedomesticbondpurchases,sothedollarappreciates. d.increasedomesticbondpurchases,sothedollardepreciates. 59.Otherthingsthesame,ifthepricelevelrises,people a.increaseforeignbondpurchases,sothedollarappreciates. b.increaseforeignbondpurchases,sothedollardepreciates. c.increasedomesticbondpurchases,sothedollarappreciates. d.increasedomesticbondpurchases,sothedollardepreciates. 60.Otherthingsthesame,ifthepricelevelrises,people a.increaseforeignbondpurchases,sothesupplyofdollarsinthemarketforforeign-currencyexchangeincreases. b.increaseforeignbondpurchases,sothesupplyofdollarsinthemarketforforeign-currencyexchangedecreases. c.decreaseforeignbondpurchases,sothesupplyofdollarsinthemarketforforeign-currencyexchangeincreases. d.decreaseforeignbondpurchases,sothesupplyofdollarsinthemarketforforeign-currencyexchangedecreases.