31) The quantity of real GDP supplied decreases if the price level ________ because it ________ profits. A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases E) None of the above answers is correct because the AS curve is vertical so that the quantity of real GDP supplied does not change when the price level changes. 32) If profits are high […]

    41.Characterize EACH of the three given statements as being TRUE or FALSE and then indicate the collective true-false status of the statements using the choices: (1) Ethene and ethane molecules have the same geometrical shape. (2) Two double bonds are present in the compound allyl chloride. (3) Cis-trans isomerism is possible in both 1-butene and 2-butene. a.All three statements are true. b.Two of […]

    76.Which of the following statements is a detailed invoice listing all checks cleared, account charges, lockbox charges, electronic transactions, etc.? a.bank statement b.bank account analysis statement c.reconciliation statement d.financial statement e.none of the above       77.Which of the following statements concerning mail-based collection systems is true? a.Regardless of recent developments in payment processing equipment, it is still too expensive for smaller […]

  51) If 27 million people are employed and 3 million people are unemployed, what is the unemployment rate? A) 11% B) 89% C) 10% D) 90% E) Not able to determine from the information provided 52) Which of the following is the best example of frictional unemployment? A) A worker is laid off because his firm has to reduce production due to reduced demand. […]

  8.5   Integrative Questions   1) The phrase “tax incidence” refers to A) how easy it is to evade the tax. B) how taxes redistribute income. C) the degree of progressiveness or regressiveness of the tax. D) who actually bears the burden of paying the tax. E) how much the government collects in revenue from a tax.   2) If the demand curve for hamburgers […]

    41. A company has computed that their “asset turnover” is 3. Which of the following statements is the best interpretation of these results? A. For every $3 of sales, $1 of net profit is generated.B. For every $3 invested in assets, $1 in net profit is generated.C. For every $1 invested in assets, $3 in sales are generated.D. For every $3 invested in assets, $1 in sales are generated. […]

  11) Suppose a decrease in the supply of wheat results in an increase in revenue. This indicates that A) the decrease in quantity sold is proportionately larger than the resulting change in price. B) the resulting increase in price is proportionately greater than decrease in quantity sold. C) the demand curve for wheat must be vertical. D) the supply curve for wheat must be […]

  11) Which of the following increases the quantity supplied of compact discs but does NOT increase the supply of compact discs? A) a decrease in the price of a compact disc B) an increase in the price of a compact disc C) a decrease in the number of suppliers of compact discs D) an increase in the price of the resources used to produce […]

    4.1   Consumer Surplus and Producer Surplus   1) The difference between the highest price a consumer is willing to pay for a good and the price the consumer actually pays is called A) producer surplus. B) the substitution effect. C) the income effect. D) consumer surplus.   2) In New York City, about 1 million apartments are subject to rent control by the […]

    11) The figure above shows the market supply of labor curve. Which of the following might be the reason the labor supply curve shifted from S0 to S1? A) an increase in technology B) a decrease in technology C) an increase in the number of women in the work force D) a decrease in the adult population E) an increase in the wage […]