71) Refer to Figure 13-2. Suppose this firm initially has the marginal revenue product curve MRP1. One reason that the curve could shift to MRP3 is A) an increase in demand for the firm’s output, copper plumbing pipe. B) a decrease in the market price of copper plumbing pipe. C) a decrease in the supply of labour. D) an increase in the wage rate. […]

    31) Unplanned inventories increase when A) real GDP is less than aggregate planned expenditure. B) actual aggregate expenditure is greater than aggregate planned expenditure. C) actual aggregate expenditure is equal to GDP. D) aggregate planned expenditure is less than GDP. E) actual aggregate expenditure is less than GDP.   32) When the change in unplanned inventories is positive, then A) real GDP is […]

    11) Reaction A releases 24 kJ/mole and has an activation energy of 98 kJ/mole. Which statement is correct concerning Reaction A? A) The overall reaction is endothermic with a high activation energy. B) The overall reaction is endothermic with a low activation energy. C) The overall reaction is exothermic with a high activation energy. D) The overall reaction is exothermic with a low […]

    21) Property rights assure people that A) the government will not confiscate their income or savings. B) the government will provide a minimum standard of living. C) the factors of production and goods are owned jointly by the government and the people. D) economic growth will enhance government involvement in the economy. E) international trade will be limited. 22) Jose and Julia were […]

    Table 1-1   Hours Open Total Revenue (dollars) 1 $50 2   75 3   95 4 110 5 120 6 125   Lydia runs a small nail salon in the town of New Hope. She is debating whether she should extend her hours of operation. Lydia figures that her sales revenue will depend on the number of hours the nail salon is […]

  Figure 2-7       Mercedes Benz recently decided to introduce its B-class automobile in the U.S. market, an electric car that is has designed and developed in a partnership with Tesla Motors. Assume Mercedes Benz chooses to produce both electric-engine vehicles and gasoline-engine vehicles. Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions. […]

  81.The average age of the inventory for a firm is 10 days old. If the current dollar amount of inventory is $1,000, what is a good estimate for the cost of goods sold over the last year? a.$16,500 b.$26,500 c.$32,500 d.$36,500 82.Accountants: a.generally construct financial statements using the cash-based approach b.generally construct financial statements using the accrual-based approach c.must apply Generally Accepted Accounting Principles […]

  41.Whatwouldhappeninthemarketforloanablefundsifthegovernmentweretodecreasethetaxrateoninterestincome? a.Therewouldbeanincreaseintheamountofloanablefundsborrowed. b.Therewouldbeareductionintheamountofloanablefundsborrowed. c.Therewouldbenochangeintheamountofloanablefundsborrowed. d.Thechangeinloanablefundsisuncertain. 42.IfCongressincreasedthetaxrateoninterestincome,investment a.wouldincreaseandsavingwoulddecrease. b.woulddecreaseandsavingwouldincrease. c.andsavingwouldincrease. d.andsavingwoulddecrease. 43.Ifthegovernmentinstitutespoliciesthatdiminishincentivestosave,thenintheloanablefundsmarket a.thedemandforloanablefundsshiftsrightward. b.thedemandforloanablefundsshiftsleftward. c.thesupplyofloanablefundsshiftsrightward. d.thesupplyofloanablefundsshiftsleftward. 44.Ifareformofthetaxlawsencouragesgreatersaving,theresultwouldbe a.higherinterestratesandgreaterinvestment. b.higherinterestratesandlessinvestment. c.lowerinterestratesandgreaterinvestment. d.lowerinterestrateandlessinvestment. 45.Whatwouldhappeninthemarketforloanablefundsifthegovernmentweretoincreasethetaxoninterestincome? a.Thesupplyofloanablefundswouldshiftright. b.Thedemandforloanablefundswouldshiftright. c.Thesupplyofloanablefundswouldshiftleft. d.Thedemandforloanablefundswouldshiftleft. 46.Whatwouldhappeninthemarketforloanablefundsifthegovernmentweretodecreasethetaxrateoninterestincome? a.Thesupplyofanddemandforloanablefundswouldshiftright. b.Thesupplyofanddemandforloanablefundswouldshiftleft. c.Thesupplyofloanablefundswouldshiftrightandthedemandforloanablefundswouldshiftleft. d.Noneoftheaboveiscorrect. 47.Whatwouldhappeninthemarketforloanablefundsifthegovernmentweretodecreasethetaxrateoninterestincome? a.Thesupplyofloanablefundswouldshiftrightwardandinvestmentwouldincrease. b.Thesupplyofloanablefundswouldshiftleftwardandinvestmentwoulddecrease. c.Thedemandforloanablefundswouldshiftrightwardandinvestmentwouldincrease. d.Thedemandforloanablefundswouldshiftleftwardandinvestmentwoulddecrease. 48.Supposethegovernmentweretoreplacetheincometaxwithaconsumptiontaxsothatinterestonsavingswasnottaxed.Theresultwouldbethattheinterestrate a.andinvestmentbothwouldincrease. b.andinvestmentbothwoulddecrease. c.wouldincreaseandinvestmentwoulddecrease. d.woulddecreaseandinvestmentwouldincrease. 49.Whichofthefollowingwouldnotbearesultofreplacingtheincometaxwithaconsumptiontaxsothatinterestincomewasnolongertaxed? a.Theinterestratewoulddecrease. b.Investmentwoulddecrease. c.Thestandardoflivingwouldeventuallyrise. d.Thesupplyofloanablefundswouldshiftright. 50.IfinthepastCongresshadtakenadditionalactionstomakesavingmorerewarding,thentodayitislikelythattheequilibriuminterestrate a.andtheequilibriumquantityofloanablefundsbothwouldbelower. b.andtheequilibriumquantityofloanablefundsbothwouldbehigher. c.wouldbehigherandtheequilibriumquantityofloanablefundswouldbelower. d.wouldbelowerandtheequilibriumquantityofloanablefundswouldbehigher.    

  31. (p. 555) At which of the following levels do cultural differences cause problems in international business negotiations?  A. Economy B. Values C. Leadership D. Motivation E. Resources 32. (p. 555) On a tour to Australia in 1992, George Bush Sr. flashed the victory sign at the Australian public, with the palm facing inwards, which was considered a rude gesture. This is an example of cultural differences causing problems at the level of:  A. thinking processes. […]

    11) A four-firm concentration ratio measures A) the fraction of an industry’s sales accounted for by the four largest firms. B) the production of any four firms in an industry. C) how the four largest firms became so concentrated. D) the fraction of employment of the four largest firms in an industry.     12) If an industry is made up of five […]