45) In the above figure, a minimum wage will not change the unemployment rate if it is set at A) $6.00. B) $9.00. C) $12.00. D) Both B and C are correct because any wage rate that exceeds $9 per hour has no effect on the unemployment rate. E) None of the above because the minimum wage always affects the unemployment […]

  18.5   The Limits of Using Fiscal Policy to Stabilize the Economy   1) The Federal Reserve plays a larger role than Congress and the president in stabilizing the economy because A) the Federal Reserve can more quickly change monetary policy than the president and the Congress can change fiscal policy. B) the Federal Reserve can immediately recognize when real GDP is below or above […]

  41) If aggregate planned expenditures are less than real GDP, then A) inventories increase above their planned levels and businesses decrease their production. B) inventories decrease below their planned levels and businesses increase their production. C) there is no equilibrium level of real GDP. D) inventories increase above their planned levels and businesses increase their production. E) unplanned inventory changes equal zero.   42) […]

    51.Garrison Corporation has the following transactions:   1.Dividends are paid to the shareholders. 2.A utility bill for July is paid in August. 3.A new warehouse facility is purchased 4.Principal payments on outstanding debt are paid. 5.Employee wages are paid. 6.Forty-five units of inventory are sold for $100 each 7.Common stock is issued for $230,000 in cash. 8.A delivery van used for 5-years is […]

41) When the average product is at its maximum, A) the marginal product is increasing as output increases. B) the marginal product is negative. C) it is equal to the marginal product. D) total product is also at its maximum. E) total product is at its minimum.   42) Under which of the following sets of circumstances is it definitely the case that the average […]

  3.4   The Effect of Demand and Supply Shifts on Equilibrium   1) Let D = demand, S = supply, P = equilibrium price, Q= equilibrium quantity. What happens in the market for tropical hardwood trees if the governments restrict the amount of forest lands that can be logged? A) D decreases, S no change, P and Q decrease B) S decreases, D no change, […]

  71. (p. 435) Channel strategy is considered to have six specific strategic goals. These goals can be characterized as the six Cs of channel strategy. Which of the following is NOT one of these six Cs?  A. Cost B. Coverage C. Capacity D. Character E. Continuity 72. (p. 435) One of the key elements in distribution decisions includes ____.  A. the selection of optimum container sizes B. volume discounts and rebates C. the functions performed by middlemen D. the […]

    61) The information in the above table gives the 2000 base period market basket and prices used to construct the CPI for a small nation. The table also has 2010 prices. What is the value of the CPI for 2010? A) 140 B) 133 C) 100 D) 71.4 E) 142   Item Quantity (2013) Price (2013) Quantity (2014) Price (2014) Magazines 400 $5.00 […]

  71) According to David Ricardo’s principle of comparative advantage, there will be gains from international trade A) only by a country with an absolute advantage in the production of some commodity. B) only by developed countries. C) by any trading country with opportunity costs similar to other countries. D) by only one country if opportunity costs are identical across countries. E) by any country […]

    56.Hanover Glassware produces crystal serve ware and uses process costing. At the start of May, 2,300 units were in process. During May, 11,000 units were completed and 2,000 units were in process at the end of May. These units in process were 80% complete with respect to material and 30% complete with respect to conversion costs. Other information is as follows:   Work […]