101.According to the new trade theory, trade, through its impact on economies of scale, is most likely to:  A. reduce the volume of the goods produced. B. decrease the variety of goods available to consumers. C. decrease the average costs of goods. D. inhibit first-mover advantages in all industries. E. only benefit nations that differ in resource endowments or technology. 102.Which of the following is true of a world […]

  11) After Norway unilaterally pegs the krone to the euro, domestic money market disturbances will A) no longer affect domestic output despite the continuation of float-rate regime against non-euro currencies. B) now have major effect on domestic output despite the continuation of float-rate regime against non-euro currencies. C) have some effect on domestic output despite the continuation of float-rate regime against non-euro currencies. D) […]

    10.4   International Negotiations and Trade Policy   1) The simple model of competition among political parties long used by political scientists tends to lead to the practical solution of selecting the A) optimal tariff. B) prohibitive tariff. C) zero (free-trade) tariff. D) the tariff rate favored by the median voter. E) the tariff rate supported by exporters.     2) The General Agreement […]

  Ex. 196 The financial statements of Gaines Company appear below:   GAINES COMPANY Comparative Balance Sheet December 31, ——————————————————————————————————————————— Assets    2013      2012 Cash…………………………………………..$  25,000$  40,000 Short-term investments………………………………15,00060,000 Accounts receivable (net)…………………………….50,00030,000 Inventory……………………………………….50,00070,000 Property, plant and equipment (net)……………………..  260,000  300,000 Total assets ……………………………………..$400,000$500,000   Liabilities and stockholders’ equity Accounts payable………………………………….$  20,000$  30,000 Short-term notes payable…………………………….30,00090,000 Bonds payable……………………………………90,000160,000 Common stock……………………………………150,000150,000 Retained earnings………………………………….  110,000    70,000 Total liabilities and […]

  91.Vernon predicts that as the demand for a new product starts to grow in other advanced countries, in the long run,:  A. the cost of labor in these advanced countries begins to increase. B. it becomes profitable for foreign firms to invest in production facilities in the United States. C. the firms in the United States begin to gain an absolute advantage. D. it begins to limit the […]

    116.Pilot Protectors manufactures pocket knives in three processes and uses process costing. All materials are added at the start of the Forming Department process. The following unit information is available for March production for the Forming Department: Beginning Work in Process (20% complete)              2,000 Plus: Units started              34,000 Units to account for              36,000 Less: Ending Work in Process (70% complete)                4,000 Units […]

  165.Waller Company has a regional division and a national division. A travel department supports the employees in both divisions. The fixed costs of the travel department ($54,000 per month) are allocated based on the peak usage of reservation services. The national division has a peak monthly usage of 160 reservations and the regional has a peak usage of 240 reservations. The variable costs of […]

    13.3   The Balance of Payments Accounts   1) Every international transaction automatically enters the balance of payments A) once either as a credit or as a debit. B) twice, once as a credit and once as a debit. C) once as a credit. D) twice, both times as debit. E) the times, once as a credit, onces as a debit, and once as […]

    66.              Which of the following is subtracted from net income in computing cash flows from operating activities using the indirect method? A)increases in accounts receivable B)decreases in accounts receivable C)decrease in taxes payable D)depreciation expense   67.              If a firm sells for $8,000 equipment that cost $25,000 and has $20,000 of accumulated depreciation, how is this reported in the statement of cash flows? […]

    121) If tablet computers are considered substitutes for e-readers, the increase in the price of tablet computers would, all else equal A) increase the demand for e-readers. B) decrease the demand for e-readers. C) increase the quantity of e-readers demanded. D) decrease the quantity of e-readers demanded.   122) If tablet computers are considered substitutes for e-readers, the decline in the price of […]