61. During the 2014 holiday season, Bob, a barber, gave business gifts to 34 customers. The values of the gifts, which were not of a promotional nature, were as follows: ? 8 at $10 each 8 at $25 each 8 at $50 each 10 at $100 each ? For 2014, what is the amount of Bob’s business gift deduction? a. $0 b. $280 c. $730 d. $850 e. None of […]

  11) Which of the following statements identifies a difference between optimization in levels and optimization in differences? A) In most cases, optimization in levels is faster and easier than optimization in differences. B) In many cases, optimization in differences is faster and easier than optimization in levels. C) Optimization in differences compares only the cost involved in different alternatives, whereas optimization in levels compares […]

  51.An inconsistency in the mercantilist doctrine, as pointed out by David Hume, is that:  A. the volume of a country’s imports increase as an indirect consequence of mercantilism. B. the exclusion of government influence in matters pertaining to trade is not ideal. C. in the long run, no country could sustain a surplus on the balance of trade. D. it was not backed by either sound political principles or social […]

    21) In the goods market, firms ________ and households ________. A) purchase goods and services; supply goods and services B) supply land, labor, capital, and entrepreneurship services; hire land, labor, capital, and entrepreneurship services C) pay rent, wages, interest, and profit:; earn rent, wages, interest, and profit D) supply goods and services; purchase goods and services E) hire land, labor, capital, and entrepreneurship […]

  5.2   Private Solutions to Externalities: The Coase Theorem   1) In economics, the optimal level of pollution is A) zero. B) the level for which the total benefit from reducing the pollution is the greatest. C) the level for which the marginal benefit from reducing the pollution is the greatest. D) the level for which the net benefit from reducing the pollution is the […]

    136.If manufacturing overhead has been underapplied during the year, the adjusting entry at the end of the year will show a a.debit to Manufacturing Overhead. b.credit to Cost of Goods Sold. c.debit to Work in Process Inventory. d.debit to Cost of Goods Sold. 137.If manufacturing overhead has been overapplied during the year, the adjusting entry at the end of the year will show […]

  Article Summary For only the second time in the previous 10 quarters, China’s GDP grew at a faster rate than from the same period a year earlier. From July through September 2013, China’s GDP increased 7.8 percent, but a decline in exports, growing inflation, and slowing growth in factory production all suggest that growth will be slowing down. China has recently been attempting to […]

  41) The law of diminishing marginal returns tells us that the more capital the firm uses, the A) lower is the firm’s interest rate. B) lower is the MRP of the firm’s capital. C) higher is the MRP of the firm’s capital. D) higher is capital’s purchase price. E) lower is capital’s rental price. 42) A decrease in market interest rates will A) increase […]

  11) The core inflation rate measures changes in the A) price of only two consumer goods: food and fuel. B) prices of all consumer goods. C) prices of consumer goods except food and fuel. D) prices of consumer goods except health care. E) prices of all the “core” goods and services a typical family buys. 12) To determine whether the goal of stable prices […]

  51.Phoenix Corp. paid rent of $15,000 per month for 3 months in advance on November 1, 2015. Phoenix accounting period ends on December 31, 2015. Which amount will be reported at December 31, 2015? a.Prepaid Rent of $5,000 on its December 31, 2015 balance sheet b.Rent Payable of $15,000 on its December 31, 2015 balance sheet c.Rent Expense of $15,000 on its income statement […]