Exhibit 9-2 The following data are projected for a possible investment project:   1     2     3     4 Revenues$120,000$140,000$160,000$180,000 Cost of Goods Sold$  36,000$  42,000$  48,000$  54,000 Depreciation$  80,000 $  60,000 $  40,000 $  20,000 EBIT$    4,000  $  38,000 $  72,000 $106,000     22.Refer to Exhibit 9-2. The project requires an initial investment of $300,000. Working capital is anticipated to be variable at 10% of revenues; the working capital investment must be made at the beginning of each period, and will be recaptured […]

  17.1   The Demand for Labor   1) In a market economy, the high salaries of some star baseball players such as Zach Greinke, are determined by A) team owners, based on the total number of star athletes they plan to hire. B) advertising companies, based on what they are willing to pay to advertise their products at baseball games. C) the interaction of the […]

  41.Whenconductinganopen-marketsale,theFed a.buysgovernmentbonds,andinsodoingincreasesthemoneysupply. b.buysgovernmentbonds,andinsodoingdecreasesthemoneysupply. c.sellsgovernmentbonds,andinsodoingincreasesthemoneysupply. d.sellsgovernmentbonds,andinsodoingdecreasesthemoneysupply. 42.Whenconductinganopen-marketpurchase,theFed a.buysgovernmentbonds,andinsodoingincreasesthemoneysupply. b.buysgovernmentbonds,andinsodoingdecreasesthemoneysupply. c.sellsgovernmentbonds,andinsodoingincreasesthemoneysupply. d.sellsgovernmentbonds,andinsodoingdecreasesthemoneysupply. 43.Anopen-marketpurchase a.increasesthenumberofdollarsandthenumberofbondsinthehandsofthepublic. b.increasesthenumberofdollarsinthehandsofthepublicanddecreasesthenumberofbondsinthehandsofthepublic. c.decreasesthenumberofdollarsandthenumberofbondsinthehandsofthepublic. d.decreasesthenumberofdollarsinthehandsofthepublicandincreasesthenumberofbondsinthehandsofthepublic. 44.Anopen-marketsale a.increasesthenumberofdollarsandthenumberofbondsinthehandsofthepublic. b.increasesthenumberofdollarsinthehandsofthepublicanddecreasesthenumberofbondsinthehandsofthepublic. c.decreasesthenumberofdollarsandthenumberofbondsinthehandsofthepublic. d.decreasesthenumberofdollarsinthehandsofthepublicandincreasesthenumberofbondsinthehandsofthepublic. 45.IftheFederalOpenMarketCommitteedecidestoincreasethemoneysupply,thentheFederalReserve a.createsdollarsandusesthemtopurchasegovernmentbondsfromthepublic. b.sellsgovernmentbondsfromitsportfoliotothepublic. c.createsdollarsandusesthemtopurchasevarioustypesofstocksandbondsfromthepublic. d.sellsvarioustypesofstocksandbondsfromitsportfoliotothepublic. 46.IftheFederalOpenMarketCommitteedecidestodecreasethemoneysupply,itwill a.sellgovernmentbonds. b.purchasecorporatebonds. c.purchasegovernmentbonds. d.reduceinterestrates. 47.WhentheFederalReservesellsassetsfromitsportfoliotothepublicwiththeintentofchangingthemoneysupply, a.thoseassetsaregovernmentbondsandtheFed’sreasonforsellingthemistoincreasethemoneysupply. b.thoseassetsaregovernmentbondsandtheFed’sreasonforsellingthemistodecreasethemoneysupply. c.thoseassetsareitemsthatareincludedinM2andtheFed’sreasonforsellingthemistoincreasethemoneysupply. d.thoseassetsareitemsthatareincludedinM2andtheFed’sreasonforsellingthemistodecreasethemoneysupply. 48.Overonetimehorizonoranother,Fedpolicydecisionsinfluence a.inflationandemployment. b.inflationbutnotemployment. c.employmentbutnotinflation. d.neitherinflationnoremployment. 49.Monetarypolicyaffectsemployment a.onlyinthelongrun. b.onlyintheshortrun. c.inboththelongrunandtheshortrun. d.inneitherthelongrunnortheshortrun. 50.TheFedcaninfluenceunemploymentin a.theshortrunandinthelongrun. b.theshortrun,butnotinthe longrun. c.thelongrun,butnotinthe shortrun. d.neithertheshortnorthelongrun. 51.TheFed’spolicydecisionshaveanimportantinfluenceon a.inflationinthelongrunandemploymentandproductionintheshortrun. b.inflationinthe longrun andemployment andproductionin thelong run. c.inflationintheshortrunandemploymentandproductionintheshortrun. d.inflationintheshortrunandemploymentandproductioninthelongrun. 52.Thereisa a.short-runtradeoffbetweeninflationandunemployment. […]

  4) In the 1980s, the U.S. government forced Japanese automakers to limit their exports to the United States. The union representing the autoworkers (UAW), argued that otherwise the U.S. auto industry would have contracted. The UAW’s argument is the ________ argument for protection. A) save domestic jobs B) national security C) anti-dumping D) infant-industry E) bringing diversity and stability   5) In 2002, President […]

  71) Refer to Figure 3-2. A shift of the supply curve from S to S1 could be caused by A) an increase in the price of energy-efficient light bulbs. B) a decrease in the price of energy-efficient light bulbs. C) an expectation that new government regulations will ban the use of energy-efficient light bulbs. D) a change in consumers’ preferences away from ordinary light […]

    11. The IRR method assumes that cash flows are reinvested at:  A. the internal rate of return. B. the company’s discount rate. C. the lower of the company’s discount rate or internal rate of return. D. an average of the internal rate of return and the discount rate.   12. When using the NPV method, the interest rate used to discount cash flows should not be thought of as […]

    71.Your aunt is seriously considering having gastric surgery to help her lose weight because previous weight-loss diets have been unsuccessful. What information would you give to help her make her decision? a.She should not go through the surgery because of the complications others have experienced. b.Her BMI of 40 is not high enough to qualify for surgery because she does not have any […]

    51) When the economy is at full employment, A) 100 percent of the labor force is employed. B) there is no structural or cyclical unemployment. C) there is no cyclical unemployment. D) there is only frictional unemployment. E) the natural unemployment rate equals zero.   52) Full employment means that A) the unemployment rate is below 6 percent. B) there is no cyclical […]

    31.Which of the following electron configurations corresponds to an element in the same group of the periodic table as the element whose electron configuration is 1s22s22p5? a.1s22s22p4 b.1s22s22p6 c.1s22s22p63s23p64s23d5 d.more than one correct response e.no correct response       32.Two unpaired electrons are present in the orbital diagram of which of the following elements? a.6C b.10Ne c.12Mg d.more than one correct response […]

    51) ________ in the United States  ________ in most European countries. A) GDP per hour; is greater than GDP per hour B) Average weekly hours; are greater than average weekly hours C) The Okun Gap; is equal to the Okun Gap D) The Lucas Wedge; is greater than the Lucas Wedge E) Both A and B are true.   52) The gap in […]