14.1   Economic Cost and Profit   1) The primary goal of a business firm is to A) promote fairness. B) make a quality product. C) promote workforce job satisfaction. D) maximize profit. E) increase its production.   2) A firm’s fundamental goal is A) different for each firm. B) to make a quality product. C) to maximize profit. D) to gain market share. E) […]

  71.Which of the following is most likely to be the result of high degrees of class consciousness in societies?   A. High levels of social mobility B. Healthy relationship between management and labor classes C. Low levels of industrial disruption D. Increase in the costs of production E. Greater opportunities for businesses to establish competitive advantage 72._____ is an ethical system that has influenced behavior and shaped culture in parts of […]

  101) Financing a budget deficit by increasing the money supply will A) allow more flexibility in the design of monetary policy. B) increase investment over time. C) create greater inflationary pressure. D) have no short-run monetary effects on the economy. E) reduce the burden of government debt. 102) In the long run, the government budget will add to sustained inflation if A) they require […]

  31) To show the values of an economic variable for different groups in a population at a point in time, it is best to use a A) scatter diagram. B) time-series graph. C) linear graph. D) cross-section graph E) trend-section diagram. 32) A graph that shows how the amount of advertising expenditure differs among various industries can be shown A) by a cross-section graph. […]

    31) The government believes that which entry barrier has allowed Microsoft to gain monopoly power? A) ownership of the entire supply of a resource B) patents C) trademarks D) economies of scale and network economies E) territorial confinement   32) The U.S. courts found Microsoft A) did not violate antitrust law. B) violated the Sherman Act. C) violated the Cellar-Kefauver Act. D) engaged […]

    71) If there is no scarcity, A) the opportunity cost of an action would be greater than its sunk cost. B) an action would have zero opportunity cost. C) choices are no longer rational. D) marginal cost of an action is greater than its marginal benefit. E) all marginal benefits would equal zero.   72) The benefit of an activity is A) purely […]

  91) The “economic incidence” of an excise tax illustrates A) who is legally responsible for paying it to the government. B) the legislative process through which it must be passed. C) the economic costs associated with avoiding the tax. D) who bears the burden of the tax. E) the political process for implementing a tax. 92) Suppose a market is in equilibrium at price […]

  41) If we compare regulating a natural monopoly using a marginal cost pricing rule to using an average cost pricing rule, we see that output is A) greater with marginal cost pricing, but average cost pricing allows for costs to be covered. B) the same under both cases, but the profit is greater with average cost pricing. C) greater under average cost pricing, but […]

  21) Refer to Figure 8-10. Identify the minimum efficient scale of production. A) Qa B) Qb C) Qc D) Qd   22) In the long run A) the firm’s fixed costs are greater than its fixed costs in the short run. B) all of the firm’s costs are explicit costs; there are no implicit costs of production. C) the firm is more profitable than […]

    61.Which one of the following is not a use of cash? A.The payment of a loan of which was borrowed in order to purchase a factory B.The issuance of a stock dividend C.Payments to suppliers D.A payment to reduce long-term debt   62.Which one of the following is a cash inflow reported in the operating activities section of the statement of cash flows? […]