31) Instead of studying for an additional two hours for the economics final, Leann decides to watch a movie. Leann is making A) a decision that does not involve an opportunity cost. B) a rational decision if her marginal cost from the movie is greater than her marginal benefit. C) a rational decision if her marginal benefit from the movie is greater than […]

  31) The “invisible hand” refers to the notion that A) competitive markets send resources to their highest valued uses. B) government intervention is necessary to ensure efficiency. C) marginal benefit decreases as more is consumed. D) marginal cost increases as more is produced. E) no matter what allocation method is used, the resulting production is efficient. 32) The efficiency of competitive markets happens because […]

    51.Denver Company prepares its statement of cash flows using the direct method and engaged in the following transactions during 2015:   1.Denver retired bonds payable by issuing common stock. 2.Denver collected on a long-term note receivable. 3.Denver issued a stock dividend. 4.Denver recorded depreciation on fixed assets. 5.Denver paid interest on long-term debt.   Which of these transactions or parts of these transactions […]

  4.2   Supply and Demand Analysis: An Oil Import Fee   Refer to the information provided in Figure 4.4 below to answer the questions that follow.   Figure 4.4   1) Refer to Figure 4.4. At the world price of ________ per barrel of oil, the United States imports 6 million barrels of oil per day. A) $100 B) $125 C) $150 D) >$150   […]

    65. Eurobonds are long-term, corporate liabilities that:  A. are issued by European firms. B. must be held inside the United States by foreigners. C. are marketed in many countries. D. are repaid in U.S. dollars. 66. Protective covenants prevent bond issuers from irresponsible overborrowing behavior and are offered for the benefit of:  A. common shareholders. B. preferred shareholders. C. bondholders. D. both common and preferred shareholders. 67. Which of the following statements is incorrect?  […]

  7.7   The Relationship between Price Elasticity of Demand and Total Revenue 1) Total revenue equals A) price per unit times quantity sold. B) price per unit times quantity supplied. C) price per unit times change in quantity sold. D) change in price per unit times quantity sold. 2) When demand is elastic, a fall in price causes total revenue to rise because A) when […]

    11) The circular flow model shows that goods and services flow from A) businesses to households. B) households to business. C) the factor market to businesses. D) the goods market to businesses. E) the factor markets to the goods markets.   12) As the circular flow model points out, a choice that households make is how A) many resources a firm will hire. […]

  11.The trading bloc MERCOSUR is located in _____. a.Europe b.Latin America c.North America d.Asia 12.The trading bloc ASEAN is located in _____. a.Asia b.Europe c.North America d.South America 13.Which of the following is true of world trade? a.World trade has deeply affected domestic policymaking. b.World trade has led to an increase in the role of primary commodities in international trade. c.World trade has decreased […]

    68.              The standard cost for direct material is $45,000 if the company produces 10,000 units of product. Actual direct materials used to produce 10,500 units of product amounted to $48,300. What is the standard cost for the direct material at the actual level of production. A)$45,000 B)$46,000 C)$47,250 D)$48,300   69.              The standard cost for facility sustaining manufacturing overhead is $536,000 if the […]

  71. Valeria Products is considering the purchase of a new machine costing $800,000. The machine is expected to reduce annual operating costs by $120,000 and will be depreciated using the straight-line method (with no half-year convention) over ten years with no salvage value at the end of its useful life. Assuming a 30 percent income tax rate, the machine’s payback period is: A. 5.56 years.B. 6.76 years.C. 9.26 years.D. 3.57 […]