15.1   A Firm’s Profit-Maximizing Choices   1) A market with a large number of sellers A) can only be a perfectly competitive market. B) might be an oligopoly or a perfectly competitive market. C) might be a monopolistically competitive or a perfectly competitive market. D) might be a perfectly competitive, monopolistically competitive, oligopoly, or monopoly market. E) can only be a monopolistically competitive market. […]

  17.5   Integrative Questions   1) In a market in which firms operate in monopolistic competition, A) the HHI for a single firm exceeds 2500. B) firms compete on price, quality and marketing. C) in the long run, firms produce at their efficient scale. D) in the long run, firms are not able to charge a markup. E) advertising is nonexistent. 2) Firms in monopolistic […]

  Exercises Ex. 162 Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting by placing the letter “F” in the space to the left of the item and indicate those characteristics which are more closely associated with managerial accounting by placing the letter “M” […]

  11) Suppose a consumer has $100 to spend on two goods, shoes and shirts. If the price of a pair of shoes is $20 per pair and the price of a shirt is $15 each, which of the following combinations is unaffordable to the consumer? A) 5 pairs of shoes and 0 shirts B) 2 pairs of shoes and 4 shirts C) 0 pairs […]

    136.The internal rate of return factor is also the a.annual rate of return. b.profitability index. c.cash payback period. d.present value factor for a single amount.     137.Use the following table, Present Value of an Annuity of 1 Period  8%   9%  10% 1.926.917.909 21.7831.7591.736 32.5772.5312.487   A company has a minimum required rate of return of 8%. It is considering investing in a […]

  13.2   Monetary Policy Effects   1) An intended goal of contractionary fiscal policy and a tightening of monetary policy is A) an increase in interest rates. B) an increase in the price level. C) a decrease in the unemployment rate. D) a decrease in the level of aggregate output.   2) If a decrease in the Z factors resulted in a very large change […]

  51) If a brewery wants to raise funds to purchase a new fermenting vat, it does so in the A) factor market. B) output market. C) product market. D) alcoholic beverages market. 52) When you purchase a new set of spurs you do so in the A) resource market. B) product market. C) input market. D) factor market. 53) Which of the following is […]

    61) Which of the following is an example of a normative economic statement? A) Universal access to quality health insurance is the most important domestic policy issue of our time. B) Extending the time in which laid-off workers are eligible to receive government unemployment compensation has increased the unemployment rate. C) Lowering marginal income tax rates depresses consumer spending. D) Prices rise when […]

  18.3   The Case Against Protection 1) If supporters of restrictions on imports argue that protection is needed to preserve a strategic industry, which of the following is being used? A) Save domestic jobs argument B) National security argument C) Dumping argument D) Infant-industry argument E) Protecting national culture argument 2) Which of the following is the national security argument against free trade? A) A […]

    41) Which of the following decreases aggregate demand and shifts the AD curve leftward? A) a tax cut B) an interest rate hike C) an increase in quantity of money D) an increase in government expenditures on goods and services E) a decrease in potential GDP 42) If a country is trying to recover from a recent recession, it is unlikely their government […]