Case 6.1 Central Enterprises is suffering an economic downturn, and the workforce needs to be reduced. Upper-level managers are debating the costs and benefits of various employee separations. Brian argues that the company needs to make immediate cuts to both management and labor. The cuts need to be made in such a way that the scope of the company and its markets are not […]

    Bavarian Brew’s schedule of projected cash disbursement JanFebMarApr Sales$510$870$450$600   All of Bavarian Brew’s sales are credit sales. The company collects 60% of its sales in the next month and the remainder in the month after that.   The company’s purchases are 75% of its sales. Of those purchases 15% are paid in cash, 50% are paid in the following month and the […]

    41) Consider the following economic agents: a.the government b. consumers c.producers   Who, in a market economy, decides what goods and services will be produced with the scarce resources available in that economy? A) the government B) producers C) consumers D) consumers and producers E) the government, consumers and producers   42) In a modern mixed economy, who decides what goods and services […]

    91) In the money market, if the quantity of money supplied exceeds the quantity of money demanded, the nominal interest rate will ________ and the prices of assets will ________. A) rise; increase B) rise; decrease C) fall; increase D) fall; decrease E) fall; not change   92) If the quantity of money supplied is greater than the quantity of money demanded, then […]

  5.3   Information Problems and Externalities in the Market for Health Care 1) A key difficulty facing insurance companies is that people know more about their health than do insurance companies, and that those people who are seriously ill are the most likely to want to obtain health insurance. What is this phenomenon called?  A) moral hazard B) economic irrationality C) asymmetric information D) adverse […]

  11.Whichofthefollowingobservationswouldbeconsistentwiththeimpositionofabindingpriceceilingonamarket? a.asmallerquantityofthegoodisboughtandsold. b.asmallerquantityofthegoodisdemanded. c.alargerquantityofthegoodissupplied. d.thepricerisesabovethepreviousequilibrium. 12.Supposethegovernmenthasimposedapriceceilingonlaptopcomputers.Whichofthefollowingeventscouldtransformthepriceceilingfromonethatisnotbindingintoonethatisbinding? a.Improvementsinproductiontechnologyreducethecostsofproducinglaptopcomputers. b.Thenumberoffirmssellinglaptopcomputersdecreases. c.Consumers’incomedecreases,andlaptopcomputersareanormalgood. d.Thenumberofconsumersbuyinglaptopcomputersdecreases. 13.Supposethegovernmenthasimposedapriceceilingonslicedsandwichbread.Whichofthefollowingeventscouldtransformthepriceceilingfromonethatisbindingtoonethatisnotbinding? a.Anincreaseinthepriceofflour,whichisusedtomakebread. b.Adecreaseinthepriceoflunchmeat. c.Adeceaseinthepriceofunslicedbread,whichpeopleconsiderasasubstituteforslicedbread. d.Andecreaseinthepriceofpeanutbutterandjelly. 14.Ifthegovernmentremovesabindingpriceceilingfromamarket,thenthepricepaidbybuyerswill a.increase,andthequantitysoldinthemarketwillincrease. b.increase,andthequantitysoldinthemarketwilldecrease. c.decrease,andthequantitysoldinthemarketwillincrease. d.decrease,andthequantitysoldinthemarketwilldecrease. 15.Ifthegovernmentremovesabindingpriceceilingfromamarket,thenthepricereceivedbysellerswill a.decrease,andthequantitysoldinthemarketwilldecrease. b.decrease,andthequantitysoldinthemarketwillincrease. c.increase,andthequantitysoldinthemarketwilldecrease. d.increase,andthequantitysoldinthemarketwillincrease. 16.Whenabindingpriceceilingisimposedonamarket, a.pricenolongerservesasarationingdevice. b.thequantitysuppliedatthepriceceilingexceedsthequantitythatwouldhavebeensuppliedwithoutthepriceceiling. c.allbuyersbenefit. d.Alloftheabovearecorrect. 17.Whenabindingpriceceilingisimposedonamarkettobenefitbuyers, a.nobuyersactuallybenefit. b.somebuyersbenefit,butnobuyersareharmed. c.somebuyersbenefit,andsomebuyersareharmed. d.allbuyersbenefit. 18.Whichofthefollowingwouldbetheleastlikelyresultofabindingpriceceilingimposedonthemarketforrentalcars? a.anaccumulationofdirtintheinteriorofrentalcars b.poorenginemaintenanceinrentalcars c.freegasolinegiventopeopleasanincentivetoarentacar d.slowreplacementofoldrentalcarswithnewerones 19.Whichofthefollowingwouldbethemostlikelyresultofabindingpriceceilingimposedonthemarketforrentalcars? a.frequentrentalprogramssuchas“Rentninetimesandthetenthrentalisfree!” b.enhancedmaintenanceprogramstopromotethehighqualityofthecars c.freegasolinegiventopeopleasanincentivetoarentacar d.slowreplacementofoldrentalcarswithnewerones 20.A priceceiling isbinding whenit isset a.abovetheequilibriumprice,causingashortage. b.abovetheequilibriumprice,causingasurplus. c.belowtheequilibriumprice,causingashortage. d.belowtheequilibriumprice,causingasurplus.    

  71.Which of the following is true about fragmented retail systems?   A. The more fragmented the retail system, the more economical it is for a firm to make contact with each individual retailer. B. Countries with fragmented retail systems tend to have short channels of distribution. C. A relatively small sales force is required to deal with a fragmented retail sector. D. It makes economic sense for the firm […]

  91.Supposethecostofflyinga200-seatplaneforanairlineis$100,000andthereare10emptyseatsonaflight.Theairlineshouldsellatickettoastandbypassengeronlyifthepassengeriswillingtopay a.morethan$200. b.morethan$300. c.morethan$500. d.Thiscannotbedeterminedfromtheinformationgiven. 92.Stephenisrestoringacarandhasalreadyspent$4,000ontherestoration.Heexpectstobeabletosellthecarfor$5,800. Stephen discovers that he needs to do an additional $2,400 of work to make the car worth $5,800 to potential buyers. He could also sell the car now, without completing the additional work, for $3,800. What should he do? a.Heshouldsellthecarnowfor$3,800. b.Heshouldkeepthecarsinceitwouldn’tberationaltospend$6,400restoringacarandthensellitforonly$5,800. c.Heshouldcompletetheadditionalworkandsellthecarfor$5,800. d.Itdoesnotmatterwhichactionhetakessincetheoutcomewillbethesameeitherway. 93.Billisrestoringacarandhasalreadyspent$4,000ontherestoration.Heexpectstobeabletosellthecarfor$6,200. Bill discovers that he needs to do an additional $2,400 of work to make […]

    31.A low-income mom began breastfeeding in the hospital and was discharged with a healthy infant. The critical time for a public health nurse to visit after discharge (which would improve the likelihood of continuing breastfeeding) is _____ after discharge. a.5-7 days b.7-10 days c.14-21 days d.3 months   32.Which of the following correctly describes the current status of breastfeeding in the United States? […]

  41.              An individual who is relatively good at transformational coping is/has: a.an external locus of control b.overdependent c.a hardy personality d.a low tolerance for ambiguity 42.              The stress-handling strategy that is considered an alternative to transformational coping and may lead to short-term stress reduction at the cost of long-term healthy life adjustment is: a.tertiary prevention b.counterdependence c.regressive coping d.stress avoidance and withdrawal 43.              Self-reliance […]