11) A commercial bank’s reserves are equal to the amount of A) the bank’s deposits. B) the bank’s government securities. C) the bank’s loans. D) currency in the bank’s vault plus the balance on its reserve account at a Federal Reserve Bank. E) only the currency in its vault. Answer:  D Topic:  Banks’ reserves Skill:  Level 1: Definition Section:  Checkpoint 11.2 Status:  CT […]

  11) After a tariff is imposed, consumers must pay a price equal to the A) world market price. B) domestic equilibrium price when there is no trade. C) world market price plus the tariff. D) world market price less the tariff. E) domestic equilibrium price when there is no trade plus the tariff. 12) Suppose the world price of widgets is $5 each. If […]

    11.Which one of the following represents the economic effects of declaring and issuing a stock dividend? a.Has no effect on total assets or total shareholders’ equity b. Decreases the debt/equity ratio c. Decreases total shareholders’ equity d. Increases the current ratio       12.Which one of the following represents the economic effects of issuing a 2-for-1 stock split? a.   No effect on […]

  11) Refer to Table 10-1. For a single-price monopolist producing and selling 9 units, the marginal revenue earned by selling the 9th unit is A) -4. B) -2. C) 0. D) 2. E) 4. 12) Refer to Table 10-1, which displays the demand schedule for a single-price monopolist. At what level of output is marginal revenue equal to 0? A) between 6 and 7 […]

  11. Which of the following is not one of the general internal control activities that companies often use?  A. Safeguarding of assets B. Transaction authorization C. Segregation of duties D. Gaining a competitive advantage over the competition 12. Ideally, segregation of duties requires which duties to be segregated?  A. Managerial and financial accounting duties B. Manufacturing and selling and administrative duties C. Computerized recordkeeping and manual recordkeeping duties D. Recordkeeping, custody, and authorization duties […]

  91) Consider the supply curve for a product such as shipping crates, which shows how many crates producers want to sell at each possible price. Alternatively, we could view this supply curve in the following way: A) for each quantity of shipping crates, the supply curve shows the economic surplus generated by the provision of that ticket. B) for each possible price, the supply […]

  61. (p. 137) Many international marketing companies address the Internet language problem by:  A. using only English on their Web sites. B. using language translation software whenever possible. C. having country-specific Web sites. D. using foreign language blocking software to screen international communications. E. using America OnLine global Internet portal services. 62. (p. 138) Gerard is heading his sales team for negotiations with their Arab partners. He was educated about the communication preferences well in […]

  61. Which of the following is not deductible as interest expense on Schedule A? a. Loan fee charged for appraisal service b. Home mortgage interest c. Mortgage interest on a second residence d. Home mortgage prepayment penalties e. All of the above are deductible as interest expense 62. Which of the following types of interest is not deductible in 2014? a. Qualified mortgage interest on residence b. Qualified mortgage interest on second residence […]

  10.1   Is Any Firm Ever Really a Monopoly? 1) To enter a local cable television market, a firm needs a license from the city government. This is an example of A) a government-imposed barrier. B)  occupational licensing. C) a natural monopoly. D) the government maintaining consistent standards in the broadcast industry. 2) The National Football League owns the NFL Network, a 24-hour cable channel […]

  11) If the marginal benefit of a hot dog is greater than its marginal cost, then to increase efficiency, A) more hot dogs should be produced. B) fewer hot dogs should be produced. C) nothing should be done if the marginal benefit is greater than the marginal cost by the maximum amount because in this case the efficient quantity of hot dogs is being […]