11) All of the following products are most likely to have significant network externalities except A) cat food. B) cell phones. C) popular board games. D) fax machines. 12) Which of the following is used to explain why a consumer’s willingness to buy Microsoft Office increases as the number of other people who use Microsoft Office increases? A) network externalities B) market failure C) […]

  51) What information is provided by average, marginal, and total product curves? A) They demonstrate that each of these measures of output increase as more inputs are applied. B) They demonstrate that, in the short run, all inputs are variable. C) They relate the prices of inputs (factors of production) to the prices of products. D) They relate the price of output to the […]

  21.Calculate the required return for a project undertaken in Italy given the following information. The appropriate risk free rate is 5%, the project has a calculated beta of 1.35 relative to the Italian stock market, and the market risk premium for the Italian stock market is 7%. a.4.45% b.5.0% c.14.45% d.9.45% 22.The spot rate for Canadian and U.S. dollars is $0.7213/C$. The annualized interest […]

    68) The figure above shows the market for pants. If the efficient quantity is produced, A) there will be no consumer surplus. B) the sum of consumer and producer surplus will be maximized. C) a small deadweight loss will result. D) the sum of consumer and producer surplus will be minimized. E) the consumer surplus on all the pants must equal the producer […]

  141.Overextendedperiodsoftime,populationgrowth a.hasnoeffectonthestandardofliving. b.hasuncertaineffectsonthestandardofliving. c.clearlyraisesthestandardofliving. d.clearlylowersthestandardofliving. 142.Otherthingsthesame,higherpopulationgrowth a.raisestheamountofphysicalcapitalperworkerandthereissomeevidencethatitraisesthepaceoftechnologicalprogress. b.raisestheamountofphysicalcapitalperworker,butthereissomeevidencethatitreducesthepaceoftechnologicalprogress. c.reducestheamountofphysicalcapitalperworker,butthereissomeevidencethatitraisesthepaceoftechnologicalprogress. d.reducestheamountofphysicalcapitalperworkerandthereissomeevidencethatitreducesthepaceoftechnologicalprogress. 143.Onthebasisoftheoryandempiricalevidence,economistshavereachedseveralconclusionsabouteconomicgrowth.Whichofthefollowingisnotoneoftheseconclusions? a.Arelativelysimplewaytoincreasegrowthratespermanentlyistoincreaseacountry’ssavingrate. b.Growthisgenerallyinhibitedratherthanpromotedbypolicieslikeprotectivetariffs. c.Well-establishedpropertyrightsthatareenforcedbyfairandefficientcourtsareimportanttoeconomicgrowth. d.Countrieswithfewdomesticnaturalresourcesstillhaveopportunitiesforeconomicgrowth. 144.Whichofthefollowingprovidebenefitstosocietyatlargeandnotjusttotheperson(s)whopursuesit? a.bothtechnologicalknowledgethatisapublicgoodandeducation b.technologicalknowledgethatisapublicgood,butnoteducation c.education,butnottechnologicalknowledgethatisapublicgood d.neithereducation,nortechnologicalknowledgethatisapublicgood 145.Allelseequal,whichofthefollowingwouldtendtocauserealGDPperpersontorise? a.achangefromoutward-orientedpoliciestoinward-orientedpolicies b.anincreaseininvestmentinhumancapital c.aweakeningofpropertyrights d.Alloftheabovearecorrect. 146.Allelseequal,whichofthefollowingwouldtendtocauserealGDPperpersontorise? a.achangefrominward-orientedpoliciestooutward-orientedpolicies b.anincreaseininvestmentinhumancapital c.strengtheningofpropertyrights. d.Alloftheabovearecorrect. 147.Whichofthefollowingstatementsisnotcorrect? a.Thecatch-upeffectisbasedontheassumptionofdiminishingreturnstocapital. b.Investmentinpoorcountriesbycitizensofrichcountriesisonewaypoorcountriescanlearnnewtechnologies. c.Malthusarguedthatcharityandgovernmentaidwasaneffectivewaytoreducepoverty. d.Peaceandjusticearekeystogrowth. 148.SenatorSmithsaysthatinordertohelppoorcountriesdevelop,theUnitedStatesshould:1.PreventU.S.corporationsfrominvestinginpoorcountriesbecausetheytakeprofitsthatthepoorcountriesshouldhave;2.Notimportgoodsfrompoorcountriesthatusechildlabor;3.Worktopromotepoliticalstabilityinpoorcountries;and4.Reducepoorcountries’relianceonmarketforcesintheireconomies.Howmanyoftheseideasarelikelytohelppoorcountriesgrow? a.1 b.2 c.3 d.4 149.SenatorNoitallsaysthatinordertohelppoorcountriesdevelop,theUnitedStatesshould:1.EncouragepoorcountriestoallowU.S.andotherforeignfirmstobuildandoperatebusinessesintheircountry;2.ReduceoreliminatesubsidizestoU.S.producerswhenpoorcountrieshaveacomparativeadvantageproducingthosegoodstheU.S.subsidizes;3.Worktopromotepoliticalstabilityinpoorcountries;and4.Reducepoorcountriesrelianceonmarketforcesintheireconomies.Howmanyoftheseideasarelikelytohelppoorcountriesgrow? a.1 b.2 c.3 d.4 150.Thepresidentofapoorcountryhasannouncedthathewillimplementthefollowingmeasureswhichheclaimsaredesignedtoincreasegrowth:1.Reducecorruptioninthelegalsystem;2.Reducerelianceonmarketforcesbecausetheyallocategoodsandservicesinanunfairmanner;3.Restrictinvestmentindomesticindustriesbyforeignersbecausetheytakesomeoftheprofitsoutofthecountry;4.Encouragetradewithneighboringcountries;and5.IncreasethefractionofGDPdevotedtoconsumption.Howmanyofthesemeasureswillhaveapositiveeffectongrowth? a.1 b.2 c.3 d.4    

    41) The figure above shows the U.S. demand and U.S. supply curves for cherries. In the absence of international trade, cherry farmers would receive ________ per pound of cherries. A) $0.50 B) $1.50 C) $2.50 D) $2.00 E) $1.00   42) The figure above shows the U.S. demand and U.S. supply curves for cherries. In the absence of international trade, how many pounds […]

    21) The upward trend in the U.S. labor force participation rate the past 50 years is explained by A) the increase in the population. B) the increase in the male labor force participation rate. C) the increase in the number of discouraged workers. D) the increase in the female labor force participation rate. E) Both answers B and D are correct.   22) […]

    21) If an economy’s depreciation is greater than its gross investment, then A) net investment is positive and saving is negative. B) the economy’s capital stock decreases. C) net investment is positive and saving is positive. D) net investment is negative and saving is negative. E) net investment must equal saving.   22) The Zonamo company produces waste disposal machines and sells them […]

  41) If a firm in a perfectly competitive market faces an equilibrium price of $5, its marginal revenue A) will be greater than $5. B) will be less than $5. C) maybe either greater or less than $5. D) will also be $5. E) will be any amount but $5. 42) If demand for a seller’s product is perfectly elastic, which of the following […]

  161.Rickets Consulting has two divisions: Internal Audit and Management Services. The firm’s accountants are in the process of selecting an allocation base to allocate centrally provided personnel costs to the two departments. Two allocation bases have been proposed—dollars of salary and number of employees. Personnel costs are expected to be $2,500,000. The following data relate to the allocations:   Internal AuditManagement Services Salaries in […]