Figure 4-10     11) Refer to Figure 4-10.  Suppose the market is initially in equilibrium at price P1 and now the government imposes a tax on every unit sold.  Which of the following statements best describes the impact of the tax?  For demand curve D1 A) the producer bears a smaller share of the tax burden if the supply curve is S2. B) […]

  16.1   Pricing Strategy, the Law of One Price, and Arbitrage   1) Price discrimination A) is the practice of charging different prices to different customers based on a seller’s personal preferences and prejudices. B) is the practice of charging different prices to different customers based on the different costs of supplying the product to different customers. C) is the practice of charging different prices […]

  21.              After working as a sales associate in an appliance store for six months, you begin to become dissatisfied with various rules and regulations, or: a.motivator factors b.Theory Y assumptions c.hygiene factors d.relatedness concerns 22.              Which of the following has been identified as both a hygiene and motivational factor in research done on Herzberg’s two-factor theory? a.achievement b.coworker relations c.advancement d.pay 23.              Which of […]

    11) After a tariff is imposed, consumers must pay a price equal to the A) world market price. B) domestic equilibrium price when there is no trade. C) world market price plus the tariff. D) world market price less the tariff. E) domestic equilibrium price when there is no trade plus the tariff.   12) Suppose the world price of widgets is $5 […]

    11) According to ________, in a market with an externality, private parties would voluntarily negotiate an efficient outcome without government intervention. A) A. C. Pigou B) Adam Smith C) Ronald Coase D) John Maynard Keynes     12) Suppose a negative externality exists in a market. If transactions costs are low and parties are willing to bargain, then, according to the Coase theorem, […]

  9.1   Basic Tariff Analysis   1) Specific tariffs are A) import taxes stated in specific legal statutes. B) import taxes calculated as a fixed charge for each unit of imported goods. C) import taxes calculated as a fraction of the value of the imported goods. D) the same as import quotas. E) import taxes calculated based solely on the origin country.     2) […]

    31) One of the possible roles governments can play in sponsoring growth is to A) provide tax incentives to encourage saving. B) own more of the nation’s resources in order to put them to use. C) close the nation to trade in order to protect its domestic producers. D) make decisions for its citizens as to the most suitable job. E) limit the […]

    91.Which of the following is considered to be a cash flow provided/(used) by financing activities? A.Dividends received from stock investments B.Cash received from customers for amounts due on account C.Proceeds from issuing common stock D.Interest paid on short-term notes payable   92.To which of the following is the operating activities section of the statement of cash flows prepared using the direct method most […]

  103. Lowman Inc. sells a product with a sales price of $25 per unit, variable costs of $10 per unit, and total fixed costs of $100,000. Lowman is looking into implementing an aggressive advertising campaign that will cost $45,000.    104. Sweet Baby Inc. produces two types of children’s specialty bed products – Baby Cribs and Toddler Beds. The following information is available related to each […]

    21) The ________ are hurt by importing a good. A) domestic consumers of the good B) domestic producers of the good C) domestic governments D) foreign producers of the good E) foreign governments 22) When the United States imports goods from the rest of the world, which of the following parties is harmed? i.domestic producers of the good ii.domestic consumers of the good […]