71.Canal Toweris a division of Sounder Products. For the most recent year, Canal Towerhad net income of $16,000,000. Included in income was interest expense of $1,200,000. The operation’s tax rate is 40 percent. Total assets of Canal Towerare $225,000,000, current liabilities are $40,000,000, of which $35,000,000 are noninterest-bearing. How much is return on investment for Canal Tower? A.8.0% B.8.8% C.9.1% D.7.4%   72.Consider […]

    Thompson Manufacturing Thompson Manufacturing is considering two investment proposals. The first involves a quality improvement project, and the second is about an advertising campaign. The cash flows associated with each project appear below.   Quality ImprovementAdvertising Campaign Initial cash outflow$100,000$100,000 Cash Inflows Year 110,00080,000 Year 230,00045,000 Year 3125,00010,000     28.Refer to Tompson Manufacturing. Suppose the hurdle rate of the firm is 10%. […]

  61) Scarcity refers to the situation in which A) unlimited wants exceed limited resources. B) unlimited resources exceed limited wants. C) a country’s population is larger than its resource base. D) a nation’s poverty level increases faster than its population. 62) The basic economic problem of scarcity A) has always existed and will continue to exist. B) will eventually disappear as technology continues to […]

    61.              Which of the following statements regarding intermolecular forces is incorrect? A)Hydrogen bonding is the strongest of the intermolecular forces. B)London dispersion forces increase with increasing molecular size. C)Dipole-dipole forces are present in all atoms and molecules. D)In order for a pure substance to participate in hydrogen bonding, it must have hydrogen bonded to F, O, or N. E)Intermolecular forces are much weaker […]

  41) An outward shift of a nation’s production possibilities frontier represents A) economic growth. B) rising prices of the two goods on the production possibilities frontier model. C) an impossible situation. D) a situation in which a country produces more of one good and less of another. 42) Economic decline (negative growth) is represented on a production possibilities frontier model by the production possibility […]

    11) The functions of money are A) medium of exchange, unit of account, and store of value. B) medium of exchange, the ability to buy goods and services, and the ability to pay off debts. C) medium of exchange, the ability to buy goods and services, and checking accounts. D) credit cards, checking accounts, currency, and coins. E) store of value, use as […]

    61) Which of the following is an example of a normative economic statement? A) Universal access to quality health insurance is the most important domestic policy issue of our time. B) Extending the time in which laid-off workers are eligible to receive government unemployment compensation has increased the unemployment rate. C) Lowering marginal income tax rates depresses consumer spending. D) Prices rise when […]

  11) At all points on a demand curve, the i.consumer’s budget has been allocated to maximize total utility. ii.quantity is the quantity demanded at each price when total utility is maximized. iii.price represents the marginal benefit the consumer gets from an extra unit of a good. A) i only B) ii only C) i and ii D) i and iii E) i, ii, and […]

  2.2   Comparative Advantage and Trade 1) You have an absolute advantage whenever you A) are better educated than someone else. B) can produce more of something than others with the same resources. C) prefer to do one particular activity. D) can produce something at a lower opportunity cost than others. Table 2-3     Serena Haley Bracelets 8 9 Necklaces 16 12   Table […]

  6.5   Corporate Governance Policy and the Financial Crisis of 2007-2009 1) Why do corporations want to keep the price of their stock high? A) A higher stock price increases the funds the firm can raise when it sells a given amount of stock. B) Corporations can pay their managers lower salaries and avoid principal-agent problems when stock prices are higher. C) Higher stock prices […]