51.Six Sigma refers to a statistically based philosophy that aims to:   A. increase defects. B. lower productivity. C. increase the costs of value creation. D. eliminate waste. E. increase cost per unit. 52.Which of the following statements is true of Six Sigma?   A. The higher the number of “sigmas,” the higher the number of errors. B. At Six Sigma, a production process would be 90 percent accurate. C. Six Sigma work […]

  41. (p. 430) Which of the following are frequently criticized for not representing the best interests of a manufacturer?  A. Global wholesalers B. Trading companies C. Manufacturer’s representatives D. Merchant middlemen E. Agent middlemen 42. (p. 428) According to the text, which of the following countries has the largest number of retailers?  A. United States B. Argentina C. China D. South Africa E. Japan 43. (p. 428) Retailing around the world has been in a state of active ferment for several years and […]

  11) Tax Payer Income Income Taxes Owed Angela $10,000   $1,000 Bob $100,000 $10,000 Carmen $1,000,000 $100,000   The table above shows three taxpayers, their incomes, and taxes owed. The data reflect a ________ income tax system because people pay ________. A) regressive; a larger portion of their income as taxes B) progressive; a smaller portion of their income as taxes C) proportional; the same […]

  51) If a product is an inferior good, then its income elasticity of demand is A) zero. B) positive. C) negative. D) indeterminate. E) undefined. 52) If a good is inferior, then it has an income elasticity of demand that is A) equal to zero. B) greater than zero. C) less than zero. D) greater than one. E) undefined. 53) If a 5 percent […]

  61.Who is the proponent of the theory of comparative advantage?  A. Adam Smith B. David Ricardo C. Paul Samuelson D. Eli Heckscher E. Bertil Ohlin 62.Palladia specializes in the production of beef and produces beef more efficiently than any other country. It buys wheat, which it produces less efficiently than beef, from Rhodia, even though it produces wheat more efficiently than Rhodia. Which of the following theories of international trade […]

31) The above figure shows the U.S. market for wheat. With international trade, the gain in total surplus is equal to ________. A) area A B) area B + area C C) area D D) area C + area F E) area C + area D + area F   32) The above figure shows the U.S. market for wheat. With no international trade, consumer […]

  16.4   The Short-Run Relationship Between Output and Unemployment   1) Which of the following is TRUE of a change in dividend payments? A) There is no substitution effect because a change in dividend payments does not change the trade-off between work and leisure. B) There is no income effect because a change in dividend payments does not change the trade-off between work and leisure. […]

  21) Most economists believe that the biases in the consumer price index cause the CPI to overstate the true inflation rate by about A) one-half to one percentage point. B) one to two percentage points. C) one quarter percentage point. D) one and one-half percentage points. 22) Which of the following would be a consequence of substitution bias in the CPI? A) Social Security […]

  51) If people expect the future exchange rate for dollars will be lower, then in the foreign exchange market the current A) quantity demanded of dollars decreases. B) quantity demanded of dollars increases. C) demand for dollars decreases. D) demand for dollars increases. E) supply of dollars decreases. 52) The ________ the expected future exchange rate, the greater is the expected profit from holding […]

  3.4   Specialization and Trade 1) If Wendy can produce more of all goods than Tommy in an hour, then A) Wendy has an absolute advantage in all goods. B) Wendy does not need to trade with Tommy in order to achieve the gains from trade. C) Wendy has a comparative advantage in all goods. D) Tommy has an absolute advantage in all goods. E) […]