71) Which of the following statements about public goods is true? A) They cannot be publicly provided. B) They are unlikely to be provided by private, profit-seeking firms. C) They are essentially negative externalities. D) They respond to market signals. E) The firms producing them must be listed on a public stock exchange. 72) A good example of a public good is A) a […]

    11) Which of the following is used to explain why a consumer’s willingness to buy Microsoft Office increases as the number of other people who use Microsoft Office increases? A) network externalities B) market failure C) diminishing marginal utility D) the income effect of a price change   12) A good is path dependent when A) consumers get utility from consuming goods that […]

  71.If supply is unchanged, a decrease in the demand for soft drinks will cause equilibrium price to:    A. Rise and equilibrium quantity to fall. B. Fall and equilibrium quantity to fall. C. Fall and equilibrium quantity to rise. D. Rise and equilibrium quantity to rise. 72.If supply is constant, a decrease in the demand for potato chips will cause:    A. A decrease in equilibrium price and a decrease in […]

  104. Brigman Inc. has the following financial statement information for 2012 and 2011:  Balance Sheet Information: 2012   2011 Assets:       Cash $ 10,250   $  51,210 Accounts receivable 7,500   8,325 Inventory     1,750        1,665 Total current assets $ 19,500   $  61,200         Property and Equipment (net)   60,000      45,000 Total assets $ 79,500 […]

    71. Hazir Products accepts capital investment projects with a payback period of four years or less. Under this condition, which of the following projects would be acceptable?      Project #1 Project #2   Annual cash flows $ 4,000 $ 12,000   Initial investment 20,000 36,000              A. Project #1 only.B. Project #2 only.C. Both Project #1 and Project #2.D. Neither Project #1 […]

  81) Soda and peanuts are complements. Other influences on buying plans remaining the same, a rise in the price of soda A) increases the demand for peanuts. B) decreases the demand for peanuts. C) decreases the demand for soda. D) increases the demand for soda. E) has no effect on the demand for peanuts, though it does change the quantity demanded of peanuts. 82) […]

  7) If a legal oligopoly exists, A) the firms always engage in a “tit for tat” strategy. B) there is the possibility that the market is large enough for more firms. C) the firms never collude. D) monopoly profits cannot be earned. E) the firms may legally merge and become a monopoly.   8) A cartel is A) another name for a firm in […]

  21) Huey has eaten two hamburgers and is considering a third. The marginal benefit in his decision is the pleasure from consuming A) the two previous hamburgers. B) all three hamburgers. C) just the third hamburger. D) just the second hamburger. E) the third hamburger minus the pleasure from consuming zero hamburgers. 22) What typically happens to benefits as the amount of an activity […]

    19.3   International Macroeconomic Policy under the Gold Standard, 1870-1914   1) Under the price-specie-flow mechanism, what happens when, say, Germany’s current account surplus is greater than its non-reserve capital account deficits? A) German loans will finance all foreign net imports. B) Automatic drop in German domestic prices and rise in foreign prices. C) Gold reserves will flow into Germany. D) Gold reserves will […]

  31) Refer to Table 19.2. ________ has a comparative advantage in motorcycles and ________ has an absolute advantage in motorcycles. A) China; neither B) Neither; neither C) Thailand; neither D) Thailand; China   32) Refer to Table 19.2. If both countries specialize and trade with each other, Thailand will export ________ and China will import ________. A) motorcycles; tractors B) tractors; motorcycles C) tractors; […]