PART II — BUDGETARY PLANNING (32 points) This problem consists of four independent mini-problems. Omit headings other than those already given.   A.Kriter Kitchen Tools produces and sells insulated ice buckets. The sales budget for 2014 is as follows:   1st quarter — 8,000 units3rd quarter — 13,000 units 2nd quarter — 11,000 units4th quarter — 10,000 units   Kriter desires an ending inventory […]

  Table 1-3   Hours Open Total Revenue (dollars) 1 $70 2 120 3 160 4 184 5 200 6 210   Santiago runs a comic book store in the town of East Arbor. He is debating whether he should extend his hours of operation. Santiago figures that his sales revenue will depend on the number of hours the store is open as shown in […]

    Table3-21   AssumethatJamaicaandNorwaycanswitchbetweenproducingcoolersandproducingradiosataconstantrate.Thefollowingtableshowsthenumberofcoolersornumberofradioseachcountrycanproduceinoneday.     OutputProducedinOneDay Coolers Radios Jamaica 12 6 Norway 24 3 61.RefertoTable3-21.Jamaica’sopportunitycostofonecooleris a.0.5radios,andNorway’sopportunitycostofonecooleris0.125radios. b.0.5radios,andNorway’sopportunitycostofonecooleris8radios. c.2radios,andNorway’sopportunitycostofonecooleris0.125radios. d.2radios,andNorway’sopportunitycostofonecooleris8radios. 62.RefertoTable3-21.SupposeJamaicadecidestoincreaseitsproductionofradiosby12.Whatistheopportunitycostofthisdecision? a.3coolers b.6coolers c.12coolers d.24coolers 63.RefertoTable3-21.Jamaicahasanabsoluteadvantageintheproductionof a.coolersandNorwayhasanabsoluteadvantageintheproductionofradios. b.radiosandNorwayhasanabsoluteadvantageintheproductionofcoolers. c.bothgoodsandNorwayhasanabsoluteadvantageintheproductionofneithergood. d.neithergoodandNorwayhasanabsoluteadvantageintheproductionofbothgoods. 64.RefertoTable3-21.Jamaicahasacomparativeadvantageintheproductionof a.coolersandNorwayhasacomparativeadvantageintheproductionofradios. b.radiosandNorwayhasacomparativeadvantageintheproductionofcoolers. c.bothgoodsandNorwayhasacomparativeadvantageintheproductionofneithergood. d.neithergoodandNorwayhasacomparativeadvantageintheproductionofbothgoods. 65.RefertoTable3-21.Jamaicashouldspecializeintheproductionof a.coolersandNorwayshouldspecializeintheproductionofradios. b.radiosandNorwayshouldspecializeintheproductionofcoolers. c.bothgoodsandNorwayshouldspecializeintheproductionofneithergood. d.neithergoodandNorwayshouldspecializeintheproductionofbothgoods. 66.RefertoTable3-21.AssumethatJamaicaandNorwayeachhas4daysavailableforproduction.Originally,eachcountrydivideditstimeequallybetweentheproductionofcoolersandradios.Now,eachcountryspendsallitstimeproducingthegoodinwhichithasacomparativeadvantage.Asaresult,thetotaloutputofcoolersincreasedby a.12. b.24. c.36. d.48. 67.RefertoTable3-21.AssumethatJamaicaandNorwayeachhas4daysavailableforproduction.Originally,eachcountrydivideditstimeequallybetweentheproductionofcoolersandradios.Now,eachcountryspendsallitstimeproducingthegoodinwhichithasacomparativeadvantage.Asaresult,thetotaloutputofradiosincreasedby a.3. b.6. c.9. d.12. 68.RefertoTable3-21.AtwhichofthefollowingpriceswouldbothJamaicaandNorwaygainfromtradewitheachother? a.1radiofor1cooler b.1radiofor4coolers c.1radiofor10coolers d.JamaicaandNorwaywouldbothgainfromtradeatalloftheaboveprices. 69.RefertoTable3-21.JamaicaandNorwaywouldnotbeabletogainfromtradeifNorway’sopportunitycostofoneradiochangedto a.0coolers. b.1cooler. c.2coolers. d.JamaicaandNorwaycanalwaysgainfromtraderegardlessoftheiropportunitycosts. Table3-22   AssumethatZimbabweandPortugalcanswitchbetweenproducingtoothbrushesandproducinghairbrushesataconstantrate.   […]

          11) The above figures show the market for HD televisions. If research is published showing that watching HD television shows causes eye damage, then which figure shows the effect of this change? A) Figure A B) Figure B C) Figure C D) Figure D E) None of the figures represent this change.   12) The above figures show the market […]

  61.Alfonsohasnoticedthatincreasesinunemploymentinsuranceclaimsareassociatedwithrecessions,andthereforeheadvocateslimitsonunemploymentinsurancesoastopreventrecessions.Maryhasnoticedthatmostdrugaddictsonceattendedschools,andthereforesheadvocatesgettingridofschoolssoastopreventdrugaddiction. a.ThereasoningofbothAlfonsoandMarysuffersfromtheomittedvariableproblem. b.ThereasoningofbothAlfonsoandMarysuffersfromthereversecausalityproblem. c.Alfonso’sreasoningsuffersfromthereversecausalityproblem,andMary’sreasoningsuffersfromtheomittedvariableproblem. d.Mary’sreasoningsuffersfromthereversecausalityproblem,andAlfonso’sreasoningsuffersfromtheomittedvariableproblem. 62.Intheearly19thcentury,theRussiangovernmentsentdoctorstosouthernRussianvillagestoprovideassistanceduringacholeraepidemic.Thevillagersnoticedthatwhereverdoctorsappeared,peopledied.Therefore,manydoctorswerechasedawayfromvillages,andsomewereevenkilled.Thisreactiontothecorrelationbetweendoctorsanddeathsismostlikelyaproblemof a.omittedvariables. b.reversecausality. c.governmentpropaganda. d.medicalincompetence. 63.Theargumentthatpurchasesofminivanscauselargefamiliesisanexampleof a.omittedvariables. b.normativestatements. c.reversecausality. d.bias. Figure2-19   Inthefollowinggraphthex-axisshowsthenumberoftimesacommuterrailtrainstopsatastationperhourandthey-axisshowsthenumberofcommuterrailpassengersperhour.   CommuterRailPassengersbyFrequencyofService 64.RefertoFigure2-19.Whichofthefollowingconclusionsshouldnotbedrawnfromobservingthisgraph? a.Thereisapositivecorrelationbetweenthefrequencyofserviceandthenumberofpassengers. b.Whenthereare5stopsperhour,thereareapproximately200passengers. c.Morestopsperhourisassociatedwithmorepassengersperhour. d.Nootherfactorsbesidesthefrequencyofserviceaffectthenumberofpassengers. 65.RefertoFigure2-19.Apolicymakerobservesthisgraphandconcludesthatincreasingthefrequencyofcommuterrailserviceisacertainwaytogetmorecommuterstochoosethecommuterrailinsteadofdrivingtheirowncars.Youwarnthepolicymakeraboutmakingareversecausalitymistakewithwhichofthefollowingstatements? a.Highergaspricesarecausingmorepeopletochoosethecommuterrailoverdriving. b.Theservicefrequencywasincreasedinresponsetoanincreaseinthenumberofpassengersperhour. c.Thereisapositiverelationshipbetweenfrequencyofstopsandnumberofpassengers. d.Noneoftheaboveiscorrect. Figure2-20     RelationshipBetweenYearsofEducationandAnnualIncome   66.RefertoFigure2-20.Thegraphaboveisa a.bargraph b.scatterplot c.piechart d.timeseriesanalysis 67.RefertoFigure2-20.Accordingtothegraph,thecorrelationbetweenyearsofeducationandannualincomeis a.positive b.negative c.inverse d.normative 68.RefertoFigure2-20.SenatorSmithobservesthegraphandconcludesthatpeoplewhoearnhigherincomesattendschoolformoreyears.SenatorJonesobservesthegraphandconcludesthatpeoplewhoattendschoolformoreyearsearnhigherincomes.Whoiscorrect? a.SenatorSmithiscorrect. b.SenatorJonesiscorrect. c.Itisdifficulttosaywhichsenatormightbecorrectduetothereversecausalityproblem. d.Itisdifficulttosaywhichsenatormightbecorrectduetoomittedvariablebias. 69.Intheorderedpair(3,6),3isthe a.x-coordinate. b.y-coordinate. c.origin. d.slope. 70.Betweenthetwoorderedpairs(3,6)and(7,18),theslopeisa.1/3 b.-1/3. c.3. d.-3. Figure2-21   71.RefertoFigure2-21.Accordingtothegraph,snowstorms a.andsnowblowerssoldarepositivelycorrelated. b.andsnowblowerssoldarenegativelycorrelated […]

  31) At a competitive equilibrium, if there are no taxes, subsidies, price regulations, quantity regulations, or externalities A) the marginal benefit is greater than the marginal cost. B) resource use is efficient. C) the marginal benefit is less than the marginal cost. D) both the marginal benefit and the marginal cost of the last unit produced equal zero. E) the marginal benefit is greater […]

    The figure above shows the U.S. market for T-shirts, where SUS is the domestic supply curve and DUS is the domestic demand curve. The world price of a T-shirt is $5.  The U.S. government imposes a $2 per unit tariff on imported T-shirts.   13) The figure above shows that as a result of the tariff, the price of a T-shirt in the […]

  11) Suppose that there are only two types of used cars, peaches and lemons. Peaches are worth $10,000 and lemons are worth $4,000. Without effective signals such as warranties, the owners of peaches cannot sell their cars for $10,000 because the A) owners of peaches cannot convince buyers that their cars are worth $10,000. B) buyers cannot convince owners of peaches to sell their […]

    21.              Which of the following occurs when an ionic compound dissolves in water to form a solution? A)Ionic bonds break.D)Entropy increases. B)Hydrogen bonds are disrupted.E)All of these C)H2O – Ion attractive forces form.   22.              Many cold packs contain ammonium nitrate and water.  The dissolving of ammonium nitrate is endothermic.  Which of the following best describes the energy and entropy changes that occur […]

  61.The following information has been collected from Harper Tools’ accounting records for the month of April:   Direct materials added to Work in Process Inventory              $ 160,000 Indirect materials added to Manufacturing Overhead              40,000 Direct labor added to Work in Process Inventory              150,000 Indirect labor added to Manufacturing Overhead              65,000 Manufacturing overhead added to Work in Process Inventory              100,000 Depreciation Expense added to Manufacturing […]