Multiple choice   35.Which of the following is not considered a capital budgeting project? A.Purchase of a new packaging machine B.Purchase of land on which to build a new factory C.Purchase of a new delivery truck to replace an old truck D.Purchase of inventory to be sold in the future   36.Capital expenditure decisions A.are useful for estimating inventory acquisition costs. B.always involve the […]

  7.6   The Determinants of the Price Elasticity of Demand   1) Which of the following products comes closest to having a perfectly inelastic demand? A) gasoline B) cholesterol medication in general C)  iPhones D) bus rides   2) Which of the following statements about the price elasticity of demand is correct? A) The elasticity of demand for a good in general is equal to […]

    51) Which of the following is true? A) For an inferior good, when income increases, the demand curve shifts leftward. B) If the price of a substitute rises, the demand curve shifts leftward. C) If people expect the price of a good will rise in the future, the demand curve shifts leftward. D) An increase in population shifts the demand curve leftward. E) […]

  21.This “hat” helps you analyze what you’re doing. a.the control of thinking hat b.the creative new idea hat c.the fact hat d.the positive benefits hat 22._____________________ hat asks that you look at the upside. a.Fact b.Feeling c.Negative d.Positive benefits 23._______________________ hat focuses attention on the emotional responses to the problem. a.Fact b.Feeling c.Negative d.Positive benefits 24.Which of the following is NOT a principle of […]

    56.              Kline Manufacturing has the following labor costs: Factory—Gross wages$490,000 Factory—Net wages420,000 Employer Payroll Taxes Payable50,000 The entry to record the cost of factory labor and the associated payroll tax expense will include a debit to Factory Labor for a.$540,000. b.$490,000. c.$470,000. d.$440,000. 57.              Factory labor costs a.accumulate in advance of utilization. b.accumulate in a control account. c.include sick pay earned by factory […]

    21) A key assumption in the segmented markets theory is that bonds of different maturities A) are not substitutes at all. B) are perfect substitutes. C) are substitutes only if the investor is given a premium incentive. D) are substitutes but not perfect substitutes.   22) The segmented markets theory can explain A) why yield curves usually tend to slope upward. B) why […]

  3.2   Opportunity Cost   1) In a production possibilities frontier graph, the cost of producing more units of a good is measured by the A) dollar value of the resources used to produce the good. B) amount of the other good or service that must be forgone. C) dollar value of the additional output. D) area in the arc between the PPF and a […]

    39.Large Corp. anticipates issuing $5,000,000 of debt to repurchase equity. If Large can issue the debt to yield 8% per year, then what is the single year increase in cash flow to Large if it issues the debt and is subject to a 34% marginal tax rate? a.$136,000 b.$400,000 c.$2,720,000 d.none of the above       40.If we start with the M&M […]

  31) If the slope of the budget line changes, there must have been A) a change in the consumer’s preferences. B) an increase in the consumer’s income. C) a change in the price of at least one good. D) a change in the price of both goods. E) None of these could cause a change in the slope of the budget line. 32) An […]

    41.Which of the following people would not be covered by the DRI, based on assumptions made by the DRI committee? a.Harry, a 35-year-old healthy businessman b.Cindy, a 21-year-old college athlete c.Robert, a 20 year old with cystic fibrosis d.Joann, a 35-year-old female vegetarian   42.When referring to the DRI recommended intakes, it is important to remember that: a.they are designed to help an […]