5.3   The Use and Limitations of Real GDP   1) GDP is A) a perfect measure of the standard of living. B) a perfect measure of the value of production. C) a measure which includes the value of all newly produced goods and services. D) an imperfect measure of the standard of living. E) the only factor that affects our standard of living. 2) […]

  11.              Alderfer’s growth need category corresponds to Maslow’s: a.interpersonal esteem needs b.safety and security needs c.social needs d.self-esteem and self-actualization needs 12.              Assume you have accepted a job offer and will shortly begin working in your first professional position. The firm provides a very competitive salary and benefit package. Your attention is now directed to learning and advancement opportunities. According to Alderfer and McGregor, […]

    51) What happens in the primary market? A) primary inputs like electricity are sold B) a corporate financial manager will resell previously issued shares of stock C) newly issued claims are sold by the borrowing firm to the initial buyer D) already issued claims are sold from one investor to another 52) The three most widely followed stock indexes in the United States […]

    11) Suppose the government has a budget surplus of $2 billion. If there is no Ricardo-Barro effect, what occurs? A) The supply of loanable funds curve shifts rightward, lowering the interest rate, and increasing investment. B) The demand for loanable funds curve shifts rightward, raising the interest rate, and increasing investment. C) The supply of loanable funds curve shifts leftward, raising the interest […]

  39) Which of the following is evidence of a shortage of walnuts? A) Firms lower the price of walnuts. B) The price of cashews is lowered in order to make up for the walnut shortage. C) The equilibrium price of walnuts falls due to a decrease in demand. D) The quantity demanded of walnuts is greater than the quantity supplied.     40) Auctions […]

  21) The Latin phrase ceteris paribus means that when a relationship between two variables is being studied, A) both are treated as unpredictable. B) neither of those two variables is allowed to change. C) all other variables are held fixed. D) we recognize that some factors are unknown.   22) Isabel noted that whenever she wore her green contact lenses, the Chicago White Sox […]

    29) If a firm has an incentive to increase supply now and decrease supply in the future, the firm expects that the A) price of its product will be lower in the future than it is today. B) price of its product will be higher in the future than it is today. C) price of inputs will be lower in the future than […]

  1) A single proprietorship is a form of business organization which A) has one owner-manager who is personally responsible for the firm’s actions and debts. B) has a single owner but has directors who are responsible for the firm’s debts. C) has limited liability. D) has unlimited access to money capital. E) allows easy transferability of ownership by the trading of shares. 2) Which […]

    56.The time between receipt of the payment and its deposit into the firm’s account is a.mail float. b.processing float. c.availability float. d.clearing float.       57.$100 million dollar days of float could be arrived at by a.$100 million dollars worth of checks with an average of 5 days of float. b.$20 million dollars worth of checks with an average of 5 days […]

  Case 9.1 Ron, the CEO at CableNet, wants to invest in career development because he is concerned that the firm is not prepared to meet future needs and challenges. Rudy, the operations manager, states that CableNet has already invested significantly in employee training, and a career development program would be a costly duplication. Rudy produces a recent productivity and quality study that shows significant […]