21) Which of the following is always a violation of the antitrust law? A) price fixing B) price discrimination C) resale price maintenance D) predatory pricing E) tying arrangements   22) Price fixing A) always is a violation of the law. B) is allowed only if otherwise a firm would go bankrupt. C) is one of the business practices prohibited by the Clayton […]

  31. In the current year, Johnice started a profitable bookkeeping business as a sole proprietor. Johnice made $38,000 in her first year of operation. What two forms mustJohnice file for her business? a. Schedules A and C b. Schedules D and E c. Schedule SE and C d. Schedules B and C e. None of the above 32. Maria runs a small business out of her home. She has expenses of […]

  41. Steve goes to Tri-State University and pays $40,000 in tuition. Steve works a part-time job to pay for his schooling and has an AGI of $17,000. How much is his American Opportunity Credit? a. $2,000 b. $2,500 c. $4,000 d. $1,000 e. He does not qualify for the American Opportunity Credit. 42. Taxpayer Q has net taxable income of $30,000 from Country Y which imposes a 40 percent income tax. […]

  41.Once a company establishes that an estimated useful life of a plant asset has changed significantly: a.the plant asset must be disposed. b.the change must be made for the current and future years. c.a correcting journal entry must be made. d.the previous year’s financial statements must be corrected. 42.The calculation of a ‘depreciation base’ requires subtracting: a.the salvage value from the asset’s book value. […]

  41) Explain the relationship between price elasticity of demand and total revenue.   42) You are the manager of a theater. At present the theater charges the same admission price of $8 to all customers, regardless of age. You propose a two-tier pricing scheme: $5 for children under the age of 12 and $10 for adults. You tell your supervisor that your proposal is […]

    31) In periods when prices are falling, on average, A) real GDP will grow slower than nominal GDP. B) real GDP will grow faster than nominal GDP. C) real GDP will grow as fast as nominal GDP. D) one cannot calculate real GDP.     32) If prices are rising on average, then A) real GDP will always be equal to nominal GDP. […]

    21) In a natural monopoly, throughout the range of market demand A) marginal cost is above average total cost and pulls average total cost upward. B) average total cost is above marginal cost and pulls marginal cost upward. C) marginal cost is below average total cost and pulls average total cost downward. D) there are diseconomies of scale.   22) To have a […]

    11) A Nash equilibrium in the duopoly game A) means that one player has greater market power. B) occurs when each player takes the best possible action regardless of the strategy chosen by other firms. C) will always lead to equilibrium in which the firms’ total profit is the largest. D) can occur only if firms cooperate with each other. E) means that […]

CHAPTER TEST QUESTIONS   Objective Questions   For each question, choose the best answer.   1.Whenever family members disagree about the care of the patient, and no advance directive is in place: A.the mother or father of the patient is asked to make a decision. B.the spouse of the patient is asked to make a decision. C.the patient’s case manager is asked to make a […]

  78.You are a U.S. dollar based corporation with a project in Great Britain that will cost you £1,000,000. The project will provide free cash flow of £500,000 for the next 3 years. If the pound denominated discount rate for this project is 12% and the spot rate is .5600£/$, then what is the dollar denominated NPV for the project? Round to the nearest $10. […]