31. Porcelain Interiors sells a variety of porcelain products including porcelain sinks. On December 31, the company had 75 sinks in inventory. The company’s policy is to maintain a sink inventory equal to 10% of next month’s expected sales. The company expects the following sales activity for the first quarter of the year:  January 750 sinks February 1,000 sinks March 1,150 sinks     What […]

  111.As per the U.S. law and OECD convention, which of the following will most likely to be considered as a grease payment?  A. Gold Fire Inc. paid a fine of $2500 for violating the labor laws in a foreign country. B. Gold Fire Inc. made a small payment of $20 to speed up some paper work related to tax returns in a less developed country. C. The proprietor of […]

  121.RefertoTable3-27.Huanghasanabsoluteadvantageintheproductionof a.parasolsandacomparativeadvantageintheproductionofparasols. b.parasolsandacomparativeadvantageintheproductionofplates. c.neithergoodandacomparativeadvantageintheproductionofparasols. d.neithergoodandacomparativeadvantageintheproductionofplates. 122.RefertoTable3-27.Minhasanabsoluteadvantageintheproductionof a.platesandacomparativeadvantageintheproductionofplates. b.parasolsandacomparativeadvantageintheproductionofplates. c.neithergoodandacomparativeadvantageintheproductionofparasols. d.neithergoodandacomparativeadvantageintheproductionofplates. 123.RefertoTable3-27.AssumethatHuangandMineachhas36laborhoursavailable.Originally,eachpersondividedhis/hertimeequallybetweentheproductionofparasolsandplates.Now,eachpersonspendsalltheirtimeproducingthegoodinwhichtheyhaveacomparativeadvantage.Asaresult,thetotaloutputofplatesincreasedby a.0. b.1.5. c.3. d.9. 124.RefertoTable3-27.AtwhichofthefollowingpriceswouldbothHuangandMingainfromtradewitheachother? a.15parasolsfor10plates b.15parasolsfor6plates c.15parasolsfor3plates d.HuangandMincouldnotbothgainfromtradewitheachotheratanyprice. Table3-28   BarbandJimrunabusinessthatsetsupandtestscomputers.AssumethatBarbandJimcanswitchbetweensettingupandtestingcomputersataconstantrate.Thefollowingtableapplies.       MinutesNeededto NumberofComputersSetUporTestedina40-HourWeek SetUp1Computer Test1Computer ComputersSetUp ComputersTested Barb 48 ? 50 40 Jim 30 40 80 60   125.RefertoTable3-28.Barb’sopportunitycostofsettinguponecomputeristesting a.4/5computerandJim’sopportunitycostofsettinguponecomputeristesting3/4computer. b.4/5computerandJim’sopportunitycostofsettinguponecomputeristesting4/3computers. c.5/4computersandJim’sopportunitycostofsettinguponecomputeristesting3/4computer. d.5/4computersandJim’sopportunitycostofsettinguponecomputeristesting4/3computers. 126.RefertoTable3-28.Barb’sopportunitycostoftestingonecomputerissettingup a.4/5computerandJim’sopportunitycostoftestingonecomputerissettingup3/4computer. b.4/5computerandJim’sopportunitycostoftestingonecomputerissettingup4/3computers. c.5/4computersandJim’sopportunitycostoftestingonecomputerissettingup3/4computer. d.5/4computersandJim’sopportunitycostoftestingonecomputerissettingup4/3computers. 127.RefertoTable3-28.Barbhasanabsoluteadvantagein a.bothsettingupandtestingcomputersandacomparativeadvantageinsettingupcomputers. b.bothsettingupandtestingcomputersandacomparativeadvantageintestingcomputers. c.neithersettingupnortestingcomputersandacomparativeadvantageinsettingupcomputers. d.neithersettingupnortestingcomputersandacomparativeadvantageintestingcomputers. 128.RefertoTable3-28.Jimhasanabsoluteadvantagein a.bothsettingupandtestingcomputersandacomparativeadvantageinsettingupcomputers. b.bothsettingupandtestingcomputersandacomparativeadvantageintestingcomputers. c.neithersettingupnortestingcomputersandacomparativeadvantageinsettingupcomputers. d.neithersettingupnortestingcomputersandacomparativeadvantageintestingcomputers. Table3-29 […]

  21) A free-market economy with perfect allocative efficiency does not exist in reality because A) government intervention in the economy prevents the economic forces that would eventually bring the market to an allocatively efficient outcome. B) the assumption of profit-maximization is not a realistic assumption about the behaviour of firms. C) the assumption of utility maximization is not a realistic assumption about the behaviour […]

    11) The processes a firm uses to turn inputs into outputs of goods and services is called A) technology. B) technological change. C) marginal analysis. D) positive economic analysis.   12) When a firm produces more output using the same inputs or the same output using fewer inputs we say that the firm A) experiences an increase in demand. B) experiences positive technological […]

  51.Frankownsadog-groomingbusiness.Whichofthefollowingcostswouldbeimplicitcosts? (i)dogshampoo (ii)rentonthestorefront (iii)wagesFrankcouldearnasasubstituteelementary-schoolteacher (iv)interestthatFrank’smoneywasearningbeforehespenthissavingstosetupthedog­ groomingbusiness a.(i)and(ii)only b.(iv)only c.(iii)and(iv)only d.(i),(ii),(iii),and(iv) 52.Implicitcosts a.donotrequireanoutlayofmoneybythefirm. b.donotenterintotheeconomist’smeasurementofafirm’sprofit. c.arealsoknownasvariablecosts. d.arenotpartofaneconomist’smeasurementofopportunitycost. 53.Whichofthefollowingisanexampleofanimplicitcost? a.(ii)and(iii)only b.(i)and(iii)only c.(i)only d.(iii)only 54.Theamountofmoneythatawheatfarmercouldhaveearnedifhehadplantedbarleyinsteadofwheatis a.anexplicitcost. b.anaccountingcost c.animplicitcost. d.forgoneaccountingprofit. 55.Whichofthefollowingisanexampleofanimplicitcost? a.salariespaidtoownerswhoworkforthefirm b.interestonmoneyborrowedtofinanceequipmentpurchases c.cashpaymentsforrawmaterials d.foregonerentonofficespaceownedandusedbythefirm 56.Foregoneinvestmentopportunitiesareanexampleof a.anexplicitcost. b.animplicitcost. c.revenues. d.profits. 57.Jacquidecidestoopenherownbusinessandearns$50,000inaccountingprofitthefirstyear.Whendecidingtoopenherownbusiness,sheturneddownthreeseparatejobofferswithannualsalariesof$30,000,$40,000,and$45,000.WhatisJacqui’seconomicprofitfromrunningherownbusiness? a.$-55,000 b.$-5,000 c.$5,000 d.$20,000 58.Bevisopeningherowncourt-reportingbusiness.Shefinancedthebusinessbywithdrawingmoneyfromherpersonalsavingsaccount.Whensheclosedtheaccount,thebankrepresentativementionedthatshewouldhaveearned$300ininterestnextyear.IfBevhadn’topenedherownbusiness,shewouldhaveearnedasalaryof$25,000.Inherfirstyear,Bev’srevenueswere$30,000.Whichofthefollowingstatementsiscorrect? a.Bev’stotalexplicitcostsare$25,300. b.Bev’stotalimplicitcostsare$300. c.Bev’saccountingprofitsexceedhereconomicprofitsby$300. d.Bev’seconomicprofitis$4,700. 59.Walterusedtoworkasahighschoolteacherfor$40,000peryearbutquitinordertostarthisownpaintingbusiness.Toinvestinhispaintingbusiness,hewithdrew$20,000fromhissavings,whichpaid3percentinterest,andborrowed$30,000fromhisuncle,whomhepays3percentinterestperyear.LastyearWalterpaid$25,000forsuppliesandhadrevenueof$60,000.WalteraskedTylertheaccountantandGregtheeconomisttocalculatehispaintingbusiness’scosts. a.Tylersayshiscostsare$25,900,andGregsayshiscostsare$66,500. b.Tylersayshiscostsare$25,000,andGregsayshiscostsare$65,000. c.Tylersayshiscostsare$66,500,andGregsayshiscostsare$66,500. d.Tylersayshiscostsare$75,000,andGregsayshiscostsare$41,500. 60.Walterusedtoworkasahighschoolteacherfor$40,000peryearbutquitinordertostarthisownpaintingbusiness.Toinvestinhispaintingbusiness,hewithdrew$20,000fromhissavings,whichpaid3percentinterest,andborrowed$30,000fromhisuncle,whomhepays3percentinterestperyear.LastyearWalterpaid$25,000forsuppliesandhadrevenueof$60,000.WalteraskedTylertheaccountantandGregtheeconomisttocalculatehispaintingbusiness’sprofit. a.Tylersayshisprofitis$25,900,andGregsayshisprofitis$66,500. b.Tylersayshisprofitis$35,000,andGregsayshelost$5,900. c.Tylersayshisprofitis$34,100,andGregsayshelost$6,500. d.Tylersayshisprofitis$34,100,andGregsayshisprofitis$34,100.    

  21. (p. 111) Cultures low in UAI take a more empirical approach to understanding and knowledge.  Those cultures low in UAI take a more empirical approach to understanding and knowledge, whereas those high in UAI seek absolute truth. 22. (p. 114) Rituals let people know what to expect.  Rituals are important. They coordinate everyday interactions and special occasions. They let people know what to expect. 23. (p. 114) The idea suggested by linguistic […]

  18.2   Central Bank Intervention and the Money Supply   1) A central bank’s international reserves consists of its holdings of A) gold. B) silver and gold. C) foreign assets and gold. D) domestic assets and precious metals. E) foreign and domestic currency holdings.     2) The liabilities side of a central bank’s accounts consists of A) deposits held by private banks. B) currency […]

  61.A(n) _____ is built upon the ideals of an individual’s right to freedom of expression and organization, a free media, and regular elections.   A. autocracy B. representative democracy C. theocracy D. aristocracy E. monocracy 62.Which of the following is a feature of representative democracy?   A. Restrictions on an individual’s right to freedom of expression, opinion, and organization B. Inability of the citizens to vote out elected representatives who fail to perform their […]

    41) If the Fed is concerned about a possible recession, it ________ the federal funds rate, which ________ the quantity of reserves and ________ the amount of bank loans. A) raises; decreases; decreases B) lowers; decreases; decreases C) lowers; increases; decreases D) raises; increases; increases E) lowers; increases; increases   42) The Fed is concerned about inflation. Its policy will ________ U.S. short-term […]