69. Avocado Corporation paid $3,000 in estimated tax payments for the calendar year ended December 31, 2014. The corporation has an actual tax liability of $4,000 for the year.  a.If no extension is requested, when is the tax return due? b.If an extension of time to file is requested and approved, when is the tax return due? c.If an extension of time to file is […]

  98.              In the month of April, a department had 500 units in the beginning work in process inventory that were 60% complete. These units had $40,000 of materials costs and $30,000 of conversion costs. Materials are added at the beginning of the process and conversion costs are added uniformly throughout the process. During April, 10,000 units were completed and transferred to the finished goods […]

  11.Theundergroundeconomy a.excludestheamountofcriminalactivityinaneconomy. b.islargerfordevelopednationsthandevelopingnationswhenmeasuredasapercentofGDP. c.includesotherwiselegaltransactionsthatgounreportedorunrecorded. d.intheUnitedStatesisinsignificantissizewhencomparedtotheofficialmeasureofGDP. 12.Supposethattwenty-fiveyearsagoacountryhadnominalGDPof$1,000,aGDPdeflatorof200,andapopulationof100.TodayithasnominalGDPof$3,000,aGDPdeflatorof400,andpopulationof150.WhathappenedtotherealGDPperperson? a.Itmorethandoubled. b.Itincreased,butitlessthandoubled. c.Itwasunchanged. d.Itdecreased. 13.Duringapresidentialcampaign,theincumbentarguesthatheshouldbereelectedbecausenominalGDPgrewby12percentduringhis4-yearterminoffice.Youknowthatpopulationgrewby4percentovertheperiodandthattheGDPdeflatorincreasedby6percentduringthepast4years.YoushouldconcludethatrealGDPperperson a.grewbymorethan12percent. b.grew,butbylessthan12percent. c.wasunchanged. d.decreased. 14.Supposethatoverthelasttwenty-fiveyearsacountry’snominalGDPgrewtothreetimesitsformersize.Inthemeantime,populationgrewby40percentandpricesroseby100percent.WhathappenedtorealGDPperperson? a.Itmorethandoubled. b.Itincreased,butitlessthandoubled. c.Itwasunchanged. d.Itdecreased. 15.Theinformationfor2008inmillionsinthetablebelowwasreportedbytheWorldBank.Onthebasisofthisinformation,whichlistbelowcontainsthecorrectorderingofrealGDPperpersonfromhighesttolowest?   Country GDP(ConstantUS$) GDP(CurrentUS$) Population Germany 2,091,573 3,649,493 82.11 Japan 5,166,281 4,910,839 127.70 U.S. 11,513,872 14,093,309 304.06   a.Japan,Germany,UnitedStates b.Japan,UnitedStates,Germany c.Germany,UnitedStates,Japan d.UnitedStates,Japan,Germany 16.Theinformationbelowfor2008inmillionswasreportedbytheWorldBank.Onthebasisofthisinformation,whichlistbelowcontainsthecorrectorderingofGDPperpersonfromhighesttolowest?   Country GDP(ConstantUS$) GDP(CurrentUS$) Population Argentina $394,595 $328,465 39.88 Bolivia $11,373 $16,674 9.69 Peru $84,241 $129,109 28.84   a.Argentina,Bolivia,Peru b.Argentina,Peru,Bolivia […]

  11.Acostimposedonsomeonewhoisneithertheconsumernortheproduceriscalleda a.correctivetax. b.commandandcontrolpolicy. c.positiveexternality. d.negativeexternality. 12.Anexternalityariseswhenapersonengagesinanactivitythatinfluencesthewell-beingof a.buyersinthemarketforthatactivityandyetneitherpaysnorreceivesanycompensationforthateffect. b.sellersinthemarketforthatactivityandyetneitherpaysnorreceivesanycompensationforthateffect. c.bystandersinthemarketforthatactivityandyetneitherpaysnorreceivesanycompensationforthateffect. d.Both(a)and(b)arecorrect. 13.Anexternalityexistswhenever a.theeconomycannotbenefitfromgovernmentintervention. b.marketsarenotabletoreachequilibrium. c.afirmsellsitsproductinaforeignmarket. d.Bobbiengagesinanactivitythatinfluencesthewell-beingofRosaandyetBobbineitherpaysnorreceivespaymentforthatinfluence. 14.Anegativeexternalityariseswhenapersonengagesinanactivitythathas a.anadverseeffectonabystanderwhoisnotcompensatedbythepersonwhocausestheeffect. b.anadverseeffectonabystanderwhoiscompensatedbythepersonwhocausestheeffect. c.abeneficialeffectonabystanderwhopaysthepersonwhocausestheeffect. d.abeneficialeffectonabystanderwhodoesnotpaythepersonwhocausestheeffect. 15.Apositiveexternalityariseswhenapersonengagesinanactivitythathas a.anadverseeffectonabystanderwhoisnotcompensatedbythepersonwhocausestheeffect. b.anadverseeffectonabystanderwhoiscompensatedbythepersonwhocausestheeffect. c.abeneficialeffectonabystanderwhopaysthepersonwhocausestheeffect. d.abeneficialeffectonabystanderwhodoesnotpaythepersonwhocausestheeffect. 16.Whenexternalitiesarepresentinamarket,thewell-beingofmarketparticipants a.andmarketbystandersarebothdirectlyaffected. b.andmarketbystandersarebothindirectlyaffected. c.isdirectlyaffected,andmarketbystandersareindirectlyaffected. d.isindirectlyaffected,andmarketbystandersaredirectlyaffected. 17.Dogownersdonotbearthefullcostofthenoisetheirbarkingdogscreateandoftentaketoofewprecautionstopreventtheirdogsfrombarking.Localgovernmentsaddressthisproblemby a.makingitillegalto”disturbthepeace.” b.havingawell-fundedanimalcontroldepartment. c.subsidizinglocalanimalshelters. d.encouragingpeopletoadoptcats. 18.Whichofthefollowingstatementsaboutawell-maintainedyardbestconveysthegeneralnatureoftheexternality? a.Awell-maintainedyardconveysapositiveexternalitybecauseitincreasesthehome’smarketvalue. b.Awell-maintainedyardconveysanegativeexternalitybecauseitincreasesthepropertytaxliabilityoftheowner. c.Awell-maintainedyardconveysapositiveexternalitybecauseitincreasesthevalueofadjacentpropertiesintheneighborhood. d.Awell-maintainedyardcannotprovideanytypeofexternality. 19.Sincerestoredhistoricbuildingsconveyapositiveexternality,localgovernmentsmaychooseto a.regulatethedemolitionofthem. b.providetaxbreakstoownerswhorestorethem. c.increasepropertytaxesinhistoricareas. d.Bothaandbarecorrect. 20.Allexternalities a.causemarketstofailtoallocateresourcesefficiently. b.causeequilibriumpricestobetoohigh. c.benefitproducersattheexpenseofconsumers. d.causeequilibriumpricestobetoolow.    

  89) Suppose a firm pollutes a river when it produces a product. To achieve the efficient amount of output, a government could impose a ________ that equals the ________ of the pollution. A) pollution charge; marginal social cost B) pollution charge; marginal external cost C) pollution tax; marginal social cost D) pollution tax; marginal external cost E) pollution subsidy; marginal social cost   90) […]

    112.Ultimate Production manufactures radon detectors. The standards for materials for each detector is 2 pounds of acrylic at a standard cost of $4.30 per pound. During May, the company purchased 890 pounds and used 830 pounds of acrylic and made 410 radon detectors. The company paid $4.45 per pound for the acrylic. There were 400 detectors budgeted for May. How much is the […]

  Multiple Choice – Section 01: Financial Institutions in the U.S. Economy 1.Atthebroadestlevel,thefinancialsystemmovestheeconomy’sscarceresourcesfrom a.therichtothepoor. b.financialinstitutionstobusinessfirmsandgovernment. c.householdstofinancialinstitutions. d.saverstoborrowers. 2.Thefactthatborrowerssometimesdefaultontheirloansbydeclaringbankruptcyisdirectlyrelatedtothecharacteristicofabondcalled a.creditrisk. b.interestrisk. c.termrisk. d.privaterisk. 3.Whenalarge,well-knowncorporationwishestoborrowdirectlyfromthepublic,itcan a.sellbonds. b.sellsharesofstock. c.gotoabankforaloan. d.Alloftheabovearecorrect. 4.Whichofthefollowingstatementsaboutthetermofabondiscorrect? a.Termreferstothevariouscharacteristicsofabond,includingitsinterestrateandtaxtreatment. b.Thetermofabondisdeterminedentirelybyitscreditrisk. c.Thetermofabondisdeterminedentirelybyhowmuchsaleschargethebuyerofthebondpayswhenheorshepurchasesthebond. d.Interestratesonlong-termbondsareusuallyhigherthaninterestratesonshort-termbonds. 5.WewouldexpecttheinterestrateonBondAtobehigherthantheinterestrateonBondBifthetwobondshaveidenticalcharacteristicsexceptthat a.thecreditriskassociatedwithBondAislowerthanthecreditriskassociatedwithBondB. b.BondAwasissuedbythecityofPhiladelphiaandBondBwasissuedbyRedHatCorporation. c.BondAhasatermof20yearsandBondBhasatermof2years. d.Alloftheabovearecorrect. 6.WewouldexpecttheinterestrateonBondAtobehigherthantheinterestrateonBondBifthetwobondshaveidenticalcharacteristicsexceptthat a.BondAwasissuedbyafinanciallyweakcorporationandBondBwasissuedbyafinanciallystrongcorporation. b.BondAwasissuedbytheExxonMobilCorporationandBondBwasissuedbythestateofNewYork. c.BondAhasatermof20yearsandBondBhasatermof1year. d.Alloftheabovearecorrect. 7.WewouldexpecttheinterestrateonBondAtobelowerthantheinterestrateonBondBifthetwobondshaveidenticalcharacteristicsexceptthat a.thecreditriskassociatedwithBondAislowerthanthecreditriskassociatedwithBondB. b.BondAwasissuedbytheApplecorporationandBondBwasissuedbythecityofHouston. c.BondAhasatermof20yearsandBondBhasatermof2years. d.Alloftheabovearecorrect. 8.WewouldexpecttheinterestrateonBondAtobelowerthantheinterestrateonBondBifthetwobondshaveidenticalcharacteristicsexceptthat a.BondAwasissuedbyafinanciallyweakcorporationandBondBwasissuedbyafinanciallystrongcorporation. b.BondAwasissuedbytheExxonMobilCorporationandBondBwasissuedbythestateofNewYork. c.BondAhasatermof1yearandBondBhasatermof5years. d.Alloftheabovearecorrect. 9.AtlasCorporationisinsoundfinancialcondition.Itsellsalong-termbond.Whichofthefollowingmaketheinterestrateonthisbondlowerthanotherwise? a.BothAltas’soundfinancesandthelongtermofthebond. b.Atlas’soundfinancesbutnotthelongtermofthebond. c.ThelongtermofthebondbutnotAtlas’soundfinances. d.NeitherAtlas’soundfinancesnorthelongtermofthebond. 10.Asanalternativetosellingsharesofstockasameansofraisingfunds,alargecompanycould,instead, a.investinphysicalcapital. b.useequityfinance. c.sellbonds. d.purchasebonds.    

  31) Relative to free trade, when a tariff is imposed in a market for an imported good, A) the consumer surplus in that market increases. B) the producer surplus in that market decreases. C) the total surplus in that market decreases. D) tariff revenue decreases. E) deadweight loss decreases. 32) Of the following, who gains because of tariffs and why? A) domestic producers of […]

  131) If a perfectly competitive firm is producing where its MR=MC, but is operating to the left of the minimum point of its LRAC curve, A) it cannot be optimizing its short-run behaviour. B) it can reduce its average costs by building a larger plant. C) it can still be in long-run equilibrium as long as P = SRATC. D) its profits will decrease […]

  81.Which of the following is true of the Treaty of Lisbon that was signed in 2007?   A.It defined the European Commission’s role in competition policy. B.It brought the commission to the court for failure to act according to an European Union treaty. C.It created the position of the president of the European Council. D.It lifted barriers to competition in the retail banking and […]