1.The accounting period is the time a. the Controller decides to close the books. b. between selling a product to a customer and collecting the cash from the customer. c. that it usually takes to journalize and post events to the ledger. d. covered by the income, cash flow, and shareholders’ equity statements. 2.An event that affects assets, liabilities, or shareholders’ equity is considered […]

  101) If the Bank of Canada pursues a contractionary monetary policy, interest rates in Canada will A) rise, there will be a capital outflow, and the Canadian dollar will depreciate. B) rise, there will be a capital inflow, and the Canadian dollar will appreciate. C) fall, there will be a capital inflow, and the Canadian dollar will depreciate. D) fall, there will be a […]

  11) Countries that enjoy economic growth A) have property rights and markets which provide incentives for discovering new technologies. B) have economies that allow the government to make decisions in everyone’s best interests. C) restrict international trade so that domestic industries can grow. D) place high taxes on saving and investment. E) place controls on property rights so that firms are protected from competition. […]

  31) If the Bank of Canada wants to influence real economic variables in the short run, it uses A) policy instruments such as the exchange rate and investment to influence the economy. B) its only policy instrument—the overnight interest rate target—to influence aggregate demand. C) policy variables such as the exchange rate and investment to influence aggregate demand. D) policy variables such as open-market […]

  81) Each citizen in Nexus City has to pay $20,000 as income tax. This is an example of a ________. A) proportional income tax B) progressive income tax C) lump-sum tax D) regressive income tax 82) A lump-sum tax is a(n) ________. A) progressive tax B) regressive tax C) proportional tax D) ordinal tax 83) Which of the following is true? A) A lump-sum […]

    51) GDP handles household production by A) estimating a dollar value of the goods purchased to do housework. B) estimating a dollar value of the services provided. C) ignoring it. D) including it in exactly the same way that all other production is included. E) including it in real GDP but not in nominal GDP because there are no prices paid for the […]

  20.1   The International Capital Market and the Gains from Trade   1) If you are offered a gamble in which you win 500 dollars 3/8 of the time and you lose 500 dollars 5/8 of the time, what is your expected payoff and your behavior given that you are a risk-lover? A) $500, take the gamble B) -$125, take the gamble C) -$125, it […]

  91.Which of the following is most likely to be an implication of the global financial crisis of 2008–2009, and the recession that followed?   A. Increase in deregulation B. Widespread acceptance of western political ideology C. Retrenchment from free markets and democracy D. Decrease in the popularity of command economies and totalitarian dictatorships E. Abolition of the legal system that protects property rights 92.Many commentators have blamed the problems […]

      44) The figure above shows the production possibilities frontiers for the United Kingdom and France. What is the opportunity cost of one bushel of wheat in France? A) 1/4 of a pound of fish B) 4 pounds of fish C) 1 pound of fish D) 100 pounds of fish E) 2 pounds of fish 45) The figure above shows the production possibilities […]

    71) The United States currently is A) a net borrower and has been since the end of World War II in 1945. B) a net lender and has been since the 1980s. C) a net borrower and has been since the 1980s. D) a net lender and has been since the end of World War II in 1945. E) neither a net lender […]