71. When calculating the break-even point in a multi-product environment, which of the following pieces of information would not be relevant? A. Contribution margin per unit for each type of productB. Each product’s percentage of total salesC. Total fixed costsD. Fixed costs per unit   72. In a multi-product environment: A. cost-volume-profit analysis should not be used.B. only the product with the highest contribution margin should be sold.C. the product with the highest sales […]

  41) If the government reduces expenditure on goods and services by $30 billion, then aggregate demand A) decreases by more than $30 billion and real GDP decreases. B) decreases by $30 billion and real GDP decreases. C) increases by $30 billion and real GDP increases. D) increases and potential GDP increases. E) increases by more than $30 billion and real GDP increases. 42) The […]

  31.The impact of technology on job design includes: a.job simplification. b.greater division of labor. c.jobs requiring higher-level skills. d.lower compensation because of the financial emphasis on equipment. 32.The goal of the sociotechnical systems approach is to design the organization for: a.joint optimization. b.reengineering. c.self-regulation of advanced technology. d.strong organization culture. 33.____ is defined as designing the social and technical systems to fit the needs […]

  39) An economic principle that explains why people pursue different occupations is A) absolute advantage. B) international trade. C) comparative advantage. D) NAFTA.     40) Assume that Honduras has a comparative advantage in producing bananas and exports bananas to Brazil.  We can conclude that A) Honduras also has an absolute advantage in producing bananas relative to Brazil. B) Honduras has a lower opportunity […]

    Exhibit 9-1 A project requires an initial investment in equipment and machinery of $10 million. The equipment is expected to have a 5-year lifetime with no salvage value and will be depreciated on a straight-line basis. The project is expected to generate revenues of $5.1 million each year for the 5 years and have operating expenses (not including depreciation) amounting to 1/3 of […]

  61) A huge 50 percent off sale on golf clubs is advertised for next week. What happens this week in the market for golf clubs? A) The supply of golf clubs increases. B) The supply of golf clubs decreases. C) The demand for golf clubs increases. D) The demand for golf clubs decreases. E) The demand for and the supply of golf clubs decreases. […]

  21._____ is the act of mining a group of customers for new product ideas, improvements in marketing methods, and other useful outcomes. a.Cannibalization b.Nano-campaigning c.Astroturfing d.Crowdsourcing 22.Sigma-Electro Inc. is a leading electronics company located in Philadelphia. As part of its new product promotion strategy, the company has placed advertisements in several social networking sites requesting marketing professionals to take part in an online discussion […]

  41.Assumethatyourroommateisverymessy.Accordingtocampuspolicy,youhavearighttoliveinanunclutteredapartment.Supposeshegetsan$80benefitfrombeingmessybutimposesa$60costonyou.TheCoasetheoremwouldsuggestthatanefficientsolutionwouldbeforyourroommateto a.stophermessyhabitsorelsemoveout. b.payyouatleast$60butlessthan$80tolivewiththeclutter. c.continuetobemessyandforceyoutomoveout. d.demandpaymentofatleast$60butnomorethan$80tocleanupafterherself. 42.SupposethatCompanyA’srailroadcarspassthroughFarmerB’scornfields.Therailroadcausesanexternalitytothefarmerbecausetherailroadcarsemitsparksthatcause$1,500indamagetothefarmer’scrops.Thereisaspecialsoy-basedgreasethattherailroadcouldpurchasethatwouldeliminatethedamagingsparks.Thegreasecosts$1,200.Supposethatthefarmerhastherighttocompensationforanydamagethathiscropssuffer.Assumethattherearenotransactioncosts.Whichofthefollowingcharacterizestheefficientoutcome? a.Therailroadwillcontinuetooperatebutwillpaythefarmer$1,500indamages. b.Therailroadwillpurchasethegreasefor$1,200andpaythefarmernothingbecausenocropdamagewilloccur. c.Thefarmerwillincur$1,500indamagestohiscrops. d.Thefarmerwillpaytherailroad$1,200topurchasethegreasesothatnocropdamagewilloccur. 43.SupposethatCompanyA’srailroadcarspassthroughFarmerB’scornfields.Therailroadcausesanexternalitytothefarmerbecausetherailroadcarsemitsparksthatcause$1,500indamagetothefarmer’scrops.Thereisaspecialsoy-basedgreasethattherailroadcouldpurchasethatwouldeliminatethedamagingsparks.Thegreasecosts$1,200.Supposethattherailroadisnotliableforanydamagecausedtothecrops.Assumethattherearenotransactioncosts.Whichofthefollowingcharacterizestheefficientoutcome? a.Therailroadwillcontinuetooperatebutwillpaythefarmer$1,500indamages. b.Therailroadwillpurchasethegreasefor$1,200andpaythefarmernothingbecausenocropdamagewilloccur. c.Thefarmerwillincur$1,500indamagestohiscrops. d.Thefarmerwillpaytherailroad$1,200topurchasethegreasesothatnocropdamagewilloccur. 44.SupposethatCharleswantstodineatafancyrestaurant,buttheonlyavailabletableisinthesmokingsection.Charlesdislikesthesmellofcigarettesmoke.Henoticesthatonlyoneperson,Sam,issmokinginthesmokingsection.Charlesvaluestheabsenceofsmokeat$40.Samvaluestheabilitytosmokeintherestaurantat$15.Whichofthefollowingrepresentsanefficientsolutionintheabsenceoftransactioncosts? a.Samcontinuestosmokebecausehehasarighttosmokeinthesmokingsection. b.CharlesoffersSambetween$15and$40nottosmoke.Samaccepts,andbothpartiesarebetteroff. c.CharlesoffersSambetween$15and$40nottosmoke.Samdeclinesbecausehehasarighttosmokeinthesmokingsection. d.Onlyagovernmentpolicybanningsmokinginrestaurantswillsolvethisproblem. 45.SupposethatBillwantstodineatafancyrestaurant,buttheonlyavailabletableisinthesmokingsection.Billdislikesthesmellofcigarettesmoke.Henoticesthatonlyoneperson,Peter,issmokinginthesmokingsection.Billvaluestheabsenceofsmokeat$15.Petervaluestheabilitytosmokeintherestaurantat$10.InorderforBilltopayPeternottosmoke,hewillneedtotipthewaiter$10tofacilitatethetransaction.Whichofthefollowingrepresentsanefficientsolution? a.PetercontinuestosmokebecausethecosttoBilltopayhimnottosmokeisbetween$20and$25,whichexceedsthebenefittohimofnosmoking($15). b.BilloffersPeterbetween$10and$15nottosmoke,andhepaysthewaiter$10.Peteraccepts,andbothpartiesarebetteroff. c.BilloffersPeterbetween$10and$15nottosmoke,andhepaysthewaiter$10.Peterdeclinesbecausehehasarighttosmokeinthesmokingsection. d.BilloffersPeter$5nottosmoke,andhepaysthewaiter$10.Peteraccepts,andbothpartiesarebetteroff. 46.Cameronlivesinanapartmentbuildingandgetsa$700benefitfromplayinghisstereo.Renee,wholivesnextdoortoCameronandoftenlosessleepduetothemusiccomingfromCameron’sstereo,bearsa$1,000costfromthenoise.AtwhichofthefollowingoffersfromReneecouldbothReneeandCameronbenefitfromthesilencingofCameron’sstereo? a.$250 b.$550 c.$750 d.$1,020 47.Alexanderlivesinanapartmentbuildingandgetsa$250benefitfromplayinghisstereo.Mary,wholivesnextdoortoAlexanderandoftenlosessleepduetotheloudmusiccomingfromAlexander’sstereo,bearsa$350costfromthenoise.MarywouldliketoofferAlexandersomemoneytoturndownthevolumeonhisstereo.IfMaryhadtohirealawyertodrawupthecontract,whatisthemaximumamountshecouldpaytothelawyertoensurethatbothAlexanderandMarywouldbenefitfromtheagreement? a.anamountlessthan$100 b.anamountbetween$100and$250 c.anamountbetween$250and$350 d.Anyamountcouldresultinbothpartiesbenefitingfromtheagreement. 48.Tylivesinanapartmentbuildingandgetsabenefitfromplayinghisstereo.Olivia, who lives next doorto Ty andoftenlosessleepduetotheloudmusiccomingfromTy’sstereo,bearsacostfromthenoise.Olivia is threatening tocallthepolicetoforceTytoturndownhisstereo.UnderwhichofthefollowingconditionswouldTybeabletoofferOliviasomeamountofmoneytokeepherfromcallingthepoliceandtoallowhimtocontinuetoplayhisstereoloudly? a.ThecostofthenoisetoOliviamustexceedthebenefitofthemusictoTy. b.ThebenefitofthemusictoTymustexceedthecostofthenoisetoOlivia. c.TheCoaseTheoremguaranteesthatOliviaandTywillalwaysbeabletocometoanagreementthatkeepsOliviafromcallingthepoliceregardlessoftheindividualbenefitsandcosts. d.ThecostofthenoisetoOliviamustexceedthebenefitofthemusictoTybyanamountgreaterthanthetransactioncostsassociatedwiththeagreement. 49.Thurmanisawriterwhoworksfromhishome.ThurmanlivesnextdoortoPhil,thedrummerforalocalband.Philneedsalotofpracticetoearn$250,whichishisshareoftheband’sprofit.ThurmangetsdistractedbyPhil’sdrummingbutheneedstogethiswritingdonetoearn$500forhiscurrentarticle.Which of the following isanefficientsolution? a.PhiloffersThurman$499toallowPhiltocontinuedrumming.Thurmanacceptsandbotharebetteroff. b.PhiloffersThurman$249toallowPhiltocontinuedrumming.Thurmanacceptsandbotharebetteroff. c.ThurmanoffersPhil$251tostoppracticinghisdrumming.Philagreesandbotharebetteroff. d.ThurmanoffersPhil$501tostoppracticinghisdrumming.Philagreesandbotharebetteroff. 50.Gretchenisawriterwhoworksfromherhome.GretchenlivesnextdoortoRandall,thetrumpetplayerforalocalband.Randallneedslotsofpracticetoearnhisshareoftheband’sprofit,whichwillamountto$350.GretchengetsdistractedbyRandall’strumpetplayingbutsheneedstogetherwritingdonetoearn$570forhercurrentarticle.IfGretchenneedstohirealawyertohelpherreachanagreementwithRandall,thenwhatpriceisGretchenwillingtopaythelawyer? a.lessthan$350 b.lessthan$450 c.lessthan$570 d.lessthan$920   […]

  21) According to the Hotelling Principle, the price of a nonrenewable resource is expected to A) rise at a rate higher than the interest rate. B) fall at a rate greater than the interest rate. C) rise at a rate less than the interest rate. D) rise at a rate equal to the interest rate. E) fall at a rate equal to the interest […]

  3.2   The Supply Side of the Market   1) A supply schedule A) is a table that shows the relationship between the price of a product and the quantity of the product supplied. B) is a curve that shows the relationship between the price of a product and the quantity of the product supplied. C) is the relationship between the supply of a good […]