81) Suppose that the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward. Which of the following could have caused these shifts? A) Desktop computers are a normal good and incomes increased, while more firms entered the market. B) The price of a laptop computer, a substitute for desktop computers, fell and the cost of producing […]

  61. In 2014, Tim sells Section 1245 property for $28,000 that he had purchased in 2008. Tim has claimed $7,000 in depreciation on the property and originally purchased it for $20,000. How much of the gain is taxable as ordinary income? a. $7,000 b. $8,000 c. $13,000 d. $18,000 e. None of the above is correct 62. Sally acquired an apartment building in 1999 for $150,000 and sold it for $410,000 […]

    61.Which of the following ratios is a measure of the company’s profitability to its market price? A.Price-earnings ratio B.Earnings per share C.Return on total assets D.Return on common stockholders’ equity 62.Which of the following is not used to measure the efficiency with which a firm uses its assets? A.Inventory turnover ratio B.Current ratio C.Accounts receivable turnover ratio D.Asset turnover   63.Which of the […]

  33) Suppose the equilibrium quantity of movie tickets is 1000. If the demand curve shifts ________, the equilibrium quantity of movie tickets will ________. A) rightward; increase B) rightward; decrease C) leftward; increase D) rightward; not change E) leftward; not change   34) If consumers buy a large number of plug-in electric cars, the equilibrium price of electricity will ________ and the equilibrium quantity […]

  21) Increasing marginal returns always occurs when the A) marginal product of an additional worker exceeds the marginal product of the previous worker. B) average product of an additional worker exceeds the average product of the previous worker. C) marginal product of an additional worker is less than the marginal product of the previous worker. D) average product of an additional worker is less […]

      1.4   Integrative Questions   1) Suppose you decide to attend summer school and that this is considered a rational choice. When making this choice, A) you must ignore the problem of scarcity. B) you considered the marginal cost and marginal benefit of your choice. C) you have used the ceteris paribus assumption. D) you have made a positive statement. E) you must […]

  21. C & K Inc. purchased a delivery van costing $65,000. Annual operating cash inflows are expected to be $18,000 each year for six years. At the end of the asset’s life, the salvage value is expected to be $5,000. Assuming C & K’s cost of capital is 15 percent, what is the asset’s net present value? (ignore income taxes) A. $3,121B. $22,044C. $5,283D. $959   22. Mid-Town Products Inc. purchased […]

  Multiple Choice Questions  60.Groups are considered teams only when:  A.they operate without any supervisor. B.everyone in the department has the same set of skills. C.employees directly interact with each other and coordinate work activities. D.all employees are located in the same physical area. E.most of the employees have the same level of motivation to accomplish goals. 61.Informal groups:  A.are initiated by the organization for […]

  31. (p. 422) _____ has long been considered the most effective nontariff barrier to the Japanese market.  A. Population in Japan B. Distribution in Japan C. Japanese culture D. Cumbersome import and export procedures in Japan E. Intense competition in Japan 32. (p. 423) Which of the following does NOT contribute to explaining why Japan has a high number of small stores?  A. Population density B. A tradition of frequent trips to the store C. Emphasis on service […]

    31) What do Sony, Microsoft, and Nintendo have in common? A) Each achieved a dominant position in its industry because it owned a key input in the production of its product. B) The industry in which each firm competes is an oligopoly because of government-imposed barriers to entry. C) Each company was founded in the same state. D) The profitability of each firm […]