41) What happens to the demand for a good if a complement’s price increases? A) The demand decreases and the demand curve shifts rightward. B) The demand increases and the demand curve shifts rightward. C) The demand decreases and the demand curve shifts leftward. D) The demand increases and the demand curve shifts leftward. E) There is no impact on demand for the good […]

  8.3   Fairness and the Big Tradeoff   1) Consider the two principles of fair taxation, the benefits principle and the ability-to-pay principle. A) Both state that people should pay taxes according to the benefits they receive from public services. B) Both state that people should pay taxes according to how easily they can bear the burden. C) Both are based on horizontal equity. D) […]

  11.An increase in accumulated depreciation: a.increases total assets. b.decreases total assets. c.decreases the current ratio. d.increases the quick ratio. 12.During extended periods of rising prices of plant and equipment, the amount required to replace long-lived assets is typically: a.less than total accumulated depreciation of those assets. b.equal to the sum of all the depreciation recognized on those assets. c. less than the balance sheet […]

    41. Dissimilarity is often particularly attractive in a partner when it:  A. represents a taboo. B. relates to our ideal self. C. makes us feel attractive. D. makes us look better by contrast.   42. In which of the following are similarities routinely important to long-term success of a partnership?  A. Shared interests B. Intelligence C. Skills and talents D. Housework and gender roles   43. Partners who are obviously dissimilar, such as an […]

    53.A firm has a capital structure of 40% debt and 60% equity. The firm has bonds outstanding with a face value of $20 million. The bonds pay, on average, a 8% annual coupon and have an average maturity length of 7 years. The market value of the bonds is 110% of face value and the tax rate facing the firm is 40%. The […]

    21) GDP is not a perfect measure of well-being because A) the value of leisure is included in GDP. B) GDP is not adjusted for pollution. C) GDP is adjusted for changes in crime rates. D) GDP is adjusted for increases in drug addiction.     22) Which of the following accurately describes an effect of hurricane Katrina on GDP? A) GDP would […]

    Bottles of SodaSlices of Pizza   51) The table above gives Ali’s total utility from consuming bottles of soda and slices of pizza. The price of pizza is $2 per slice and the price of soda is $1 per bottle. His marginal utility from the 4th slice of pizza is A) 7. B) 3.50. C) 34. D) 17.50. E) 27.   52) The […]

1. Which of the following challenges must managers overcome to remain competitive? a. Challenge of managing ethical behavior b. Challenge of work force diversity c. Challenge of globalization d. All of the above 2. Which of the following is NOT one of the major challenges that managers must deal with in order to remain competitive? a. Globalizing the firm’s operations to compete in the global […]

  31) The figure above shows the marginal cost and marginal benefit of police protection in the city of Hugo, Oklahoma. Police protection is a public good. The efficient number of officers that should be hired by the city of Hugo is A) 15. B) 25. C) 10. D) 0. E) More than 25 because MB > $0 when 25 officers are hired.   32) […]

  71) A type of advantage that a global company possesses by virtue of the fact that it has experience in more than one country is referred to as: A) Leverage. B) Transferability. C) Flexibility. D) Capability. E) Enability. 72) A number of multilateral trade agreements have accelerated the pace of global integration which include: A) NAFTA. B) GATT. C) WTO. D) EU. E) all […]