Multiple Choice Questions  48.In organizational settings, power is defined as:  A.the practice of trying to influence another person. B.the capacity to influence others. C.the act of changing another person’s attitudes and behaviors. D.the extent to which one person is required to follow another person’s commands even though he or she does not want to follow the commands. E.any situation where one person is dependent […]

  13.1   Measuring the Unemployment Rate, the Labor Force Participation Rate, and the Employment-Population Ratio 1) Based in part on the aftermath of the financial crisis that began in 2008 and the speed of the recovery of the U.S. economy following the recession of 2007-2009, Bank of America ________ the number of persons it employed in September 2011 and this ________ the total number of […]

  52) For a firm in monopolistic competition, the efficient scale is the amount of output at which ________ is a minimum. A) fixed cost B) average total cost C) average variable cost D) average fixed cost E) marginal cost   53) Excess capacity exists when a firm produces A) more than the profit-maximizing level of output. B) less than the quantity that minimizes average […]

  11.3   The Federal Reserve System   1) A public authority that provides banking services to commercial banks and regulates financial institutions and markets is called a A) commercial bank. B) thrift institution. C) central bank. D) money market fund. E) mint. Answer:  C Topic:  Central banks Skill:  Level 1: Definition Section:  Checkpoint 11.3 Status:  CT 2) All of the following are financial institutions that […]

  41) Suppose the elasticity of demand for a product is 0 and elasticity of supply is 1. If the government imposes a tax on the product, then A) buyers and sellers pay exactly the same share of the tax. B) buyers pay all of the tax. C) sellers pay all of the tax. D) buyers pay a smaller share of the tax than do […]

    141.Templeton Widgetsapplies manufacturing overhead based on direct labor hours. It budgeted 123,000 direct labor hours at $11.50 per labor hour and incurred 125,000 direct labor hours at an actual total labor cost of $1,500,000. It incurred $720,000 of manufacturing overhead and estimated the manufacturing overhead cost to be $707,250 for the period. What was the predetermined overhead rate? A.$0.50 B.$5.75 C.$0.48 D.$5.76   […]

  102) The firm’s supply curve is its A) marginal cost curve above the average variable cost curve. B) marginal cost curve below the average variable cost curve. C) average variable cost curve above the marginal cost curve. D) average total cost curve above the marginal cost curve. E) marginal revenue curve above the average total cost curve.   103) Which of the following will […]

  141.RefertoFigure10-9,Panel(b)andPanel(c).Theinstallationofascrubberinasmokestackreducestheemissionofharmfulchemicalsfromthesmokestack.Therefore,agovernmentpolicythatinternalizedtheexternalitywouldmovethequantityofsmokestackscrubbersinstalledfrompoint a.Q2topointQ3. b.Q3topointQ2. c.Q4topointQ5. d.Q5topointQ4. 142.RefertoFigure10-9,Panel(b)andPanel(c).Whichofthefollowingiscorrect? a.AtaxwouldmovethemarketinPanel(b)andthemarketinPanel(c)closertothesociallyoptimaloutcome. b.AsubsidywouldmovethemarketinPanel(b)andthemarketinPanel(c)closertothesociallyoptimaloutcome. c.AtaxwouldmovethemarketinPanel(b)closertothesociallyoptimaloutcome,butasubsidywouldmovethemarketinPanel(c)closertothesociallyoptimaloutcome. d.AsubsidywouldmovethemarketinPanel(b)closertothesociallyoptimaloutcome,butataxwouldmovethemarketinPanel(c)closertothesociallyoptimaloutcome. Figure10-10 143.RefertoFigure10-10.Thegraphrepresentsamarketinwhich a.thereisnoexternality. b.thereisapositiveexternality. c.thereisanegativeexternality. d.Theanswercannotbedeterminedfrominspectionofthegraph. 144.RefertoFigure10-10.Whichofthefollowingstatementsiscorrect? a.Theprivatecostofproducingthe160thunit of output is $16. b.Thesocialcostofproducingthe160thunit of output is $22. c.Theexternalcostofproducingthe160thunitofoutputis$6. d.Alloftheabovearecorrect. 145.RefertoFigure10-10.Whichofthefollowingstatementsiscorrect? a.Theprivatecostofproducingthe120thunit of output is $12. b.Thesocialcostofproducingthe120thunit of output is $22. c.Theexternalcostofproducingthe120thunitofoutputis$2. d.Alloftheabovearecorrect. 146.RefertoFigure10-10.Thesociallyoptimalquantityofoutputis a.120units,sincethevaluetothebuyerofthe120thunitisequaltothecostincurredbythesellerofthe120thunit. b.120units,sincethevaluetothebuyerofthe120thunitisequaltothecostincurredbysocietyofthe120thunit. c.160units,sincethevaluetothebuyerofthe160thunitisequaltothecostincurredbythesellerofthe160thunit. d.160units,sincethevaluetothebuyerofthe160thunitisequaltothecostincurredbysocietyofthe160thunit. 147.RefertoFigure10-10.Adecreaseinoutputfrom160unitsto120unitswould a.movethemarketfromasociallyefficientoutcometoasociallyinefficientoutcome. b.reducetheexternalcostperunitofoutput. c.increasetotaleconomicwell-being. d.notbeanactionofwhichabenevolentsocialplannerwouldapprove. 148.RefertoFigure10-10.Anincreaseinoutputfrom120unitsto160unitswould a.movethemarketfromasociallyefficientoutcometoasociallyinefficientoutcome. b.increasetheexternalcostperunitofoutput. c.increasetotaleconomicwell-being. d.beanactionofwhichabenevolentsocialplannerwouldapprove. 149.RefertoFigure10-10.“Thesocialcostofthelastunitproducedexceedsthevaluetobuyersofthelastunitproducedby$3.”Thisstatementiscorrectatwhichquantityofoutput? a.120units b.140units c.160units d.Thestatementistrueatallquantitiesofoutput. 150.RefertoFigure10-10.Takingintoaccountprivateandexternalcosts,themaximumtotalsurplusthatcanbeachievedinthismarketis a.$760. […]

  4.3   Market Equilibrium   1) Market equilibrium occurs when A) all markets become equal. B) the quantity demanded equals the quantity supplied. C) opposing forces pull demand and supply apart. D) demand and supply move in opposite direction. E) demand and supply change so that they are equal at all possible prices. 2) Market equilibrium occurs when A) the quantity demanded equals the quantity […]

    142.Scotch Brand Products produces packaging tape and has determined the following to be its standard cost of producing one case of budget packaging tape:   Material (3.50 ounces at $1.30 per ounce)              $4.55 Labor (0.30 hour at $12.00 per hour)              3.60 Overhead                 2.20 Total              $10.35   At the start of 2014, Scotch Brand planned to produce 80,000 cases of tape during the […]