21) The above figure shows the production possibility frontier for a country. What is the opportunity cost per ton of rice to move from point B to point D? A) 1000 bottles of wine B) 500 bottles of wine C) 2 bottles of wine D) 1/2 of a bottle of wine E) None of the above answers is correct. 22) The above figure shows […]

    11) Induced taxes are defined as taxes A) we are forced to pay for services from the government. B) that vary with real GDP. C) that are avoided with the use of legal tax shelters. D) enacted by Congress that explicitly state the amount to be paid. E) that rise in recessions and fall in expansions.   12) Needs-tested spending is defined as […]

  5.2  Putting It All Together   1) While making a purchase decision using marginal thinking, a buyer should buy the good that yields the: A) highest marginal benefit per dollar spent. B) lowest marginal benefit per dollar spent. C) highest average benefit plus marginal benefit per dollar spent. D) lowest average benefit plus marginal benefit per dollar spent.   The following table shows the […]

  81) The Coase theorem deals with the problem of pollution by A) giving the government regulatory power over polluters. B) making all polluters stop polluting. C) establishing and enforcing private property rights. D) having the government take over ownership of all polluting processes. E) allowing the government to set the proper emission charge. 82) If transactions costs are low, then assigning property rights in […]

  61) In order to fight piracy in China, Budweiser Beer’s approach includes: A) printing labels in Chinese. B) changing color of beer cans. C) beer cans in China have fluted edges. D) printing labels both in Chinese and English. E) making beer very cheap in price in China. 62) Which of the following statements is correct? A) The Paris Convention protects patents, the Berne […]

  61) As a curve approaches a maximum point, the slope will A) be positive and then negative after the maximum point. B) be negative and then positive after the maximum point. C) remain constant on either side of the maximum point. D) increase before and after the maximum point. E) decrease before and after the maximum point. 62) In the figure above, the relationship […]

  91) The process of “creative destruction” in an oligopolistic industry suggests that A) profits are driven to zero by the entry of new firms. B) no firm can survive in the long run. C) firms can enter and leave without incurring any sunk costs of entry. D) there are no costs of exit in oligopoly. E) the prospect of keeping the resulting profits provides […]

  11.              All of the following are autocratic leader characteristics except: a.strongly controlling work relationships b.explicit work orders and minimal follower flexibility in application of work rules c.highly structured work situation and close supervision d.employee-centered 12.              The most pronounced consequence of laissez-faire leadership tends to be: a.high job satisfaction b.the development of leadership at lower levels of the organization c.an organization that is very flexible […]

    41) How do the owners of a partnership relate to the business? A) The owners and the business are not separate legal entities. B) The owners and the business are separate legal entities. C) The assets of the owners are considered separate from the asset of the business. D) None of these describe the legal relationship of the owners to the business.   […]

  21. In 2012, Truman Products sold 900,000 units at $9 each. Sales volume is expected to increase by 10 percent in 2013 while the price of each unit is expected to decrease by 15 percent. The expected sales revenue for 2013 is:  A. $8,761,500 B. $1,336,500 C. $7,573,500 D. $6,885,000   22. Last year, Garrison Manufacturing sold 250,000 units at $8 each. Both sales volume and sales price are expected […]