11.2   The Banking System   1) A commercial bank is defined as A) any institution that accepts deposits. B) a firm that is chartered to accept deposits and make loans. C) the institution that sets regulations for commercial activities. D) a firm that obtains funds by selling shares and then buys U.S. Treasury bills. E) any institution that makes loans. 2) Which statement is […]

  41. All of the following are problems that contribute to the inaccuracy of performance appraisals except: a. deficiency. b. unreliability. c. invalidity. d. recording. 42. Performance feedback is more likely to lead to increased job performance when it is: a. constructive and specific. b. provided in written form only. c. not recorded. d. one-way communication. 43. A key criticism of self-evaluations is: a. the […]

  91.From mid-2008 through early 2009, the value of the dollar moderately increased against major currencies, despite the fact that the American economy was suffering from a serious financial crisis. Which of the following was a reason for this phenomenon?  A. High real interest rates in the United States compared to any other developed region in the world sparked an inflow of funds into the country. […]

  25) Moving from a point inside the production possibilities frontier to a point on the production possibilities frontier, the opportunity cost of producing more of the good on the horizontal axis A) increases. B) decreases. C) is constant. D) is 0. E) is infinite.   26) Consider a production possibility frontier with jeans on the vertical axis and shoes on the horizontal axis. As […]

  31. (p. 498) The largest personnel requirement abroad for most companies is:  A. the management team. B. the service department. C. the purchasing professionals. D. the advertising specialists. E. the sales force. 32. (p. 498) In which of the following scenarios is an expatriate sales force the best choice for a company?  A. When the product is customized B. When the product is mass-marketed C. When the product caters to a niche market D. When the product is highly […]

      50) The figure above shows the demand, marginal revenue, and marginal cost curves for Paul’s Parrot Pillows, a single-price monopoly producer of pillows stuffed with parrot feathers. When Paul maximizes his profit, he produces ________ pillows per hour. A) 1,000 B) 3,000 C) 4,000 D) 0 E) 2,000   51) The figure above shows the demand, marginal revenue, and marginal cost curves […]

  Refer to the information provided in Figure 11.6 below to answer the questions that follow.     Figure 11.6   31) Refer to Figure 11.6. The demand for money curve will shift from to if A) the Fed sells government securities on the open market. B) the price level decreases. C) the interest rate increases. D) the nominal aggregate output increases.   32) Refer […]

  71.SupposethatanAmericanopensandoperatesacandyfactoryinFinland.Thisisanexampleof a.foreigndirectinvestment.AmericansavingisusedtofinanceFinishinvestment. b.foreigndirectinvestment.AmericansavingisusedtofinanceAmericaninvestment. c.foreignportfolioinvestment.AmericansavingisusedtofinanceFinishinvestment. d.foreignportfolioinvestment.AmericansavingisusedtofinanceAmericaninvestment. 72.SupposethatanAmericancompanyopensandoperatesarestaurantinIreland.Thisisanexampleof a.foreigndirectinvestment.AmericansavingisusedtofinanceIrishinvestment. b.foreigndirectinvestment.AmericansavingisusedtofinanceAmericaninvestment. c.foreignportfolioinvestment.AmericansavingisusedtofinanceIrishinvestment. d.foreignportfolioinvestment.AmericansavingisusedtofinanceAmericaninvestment. 73.Foreignsavingisusedfordomesticinvestmentwhenforeignersengagein a.foreigndirectinvestment. b.foreignportfolioinvestment. c.eitherforeigndirectinvestmentorforeignportfolioinvestment. d.Noneoftheaboveiscorrect. 74.IfWarmWear,aU.S.manufacturerofwinterclothing,opensanewfactoryinAustria,then a.AustrianGNPincreasesbymorethanAustrianGDP,becauseGDPincludesincomeearnedbyforeignersworkinginAustria. b.AustrianGNPincreasesbymorethanAustrianGDP,becauseGDPexcludesincomeearnedbyforeignersworkinginAustria. c.AustrianGNPincreasesbylessthanAustrianGDP,becauseGDPincludesincomeearnedbyforeignersworkinginAustria. d.AustrianGNPincreasesbylessthanAustrianGDP,becauseGDPexcludesincomeearnedbyforeignersworkinginAustria. 75.SupposeaU.S.automakerbuildsandoperatesanewfactoryinItaly.Futureproductionfromsuchaninvestmentwill a.increaseItalianGDPmorethanitincreasesItalianGNP. b.increaseItalianGNPmorethanitincreasesItalianGDP. c.havenoaffectonItalianGNP,butwillincreaseItalianGDP. d.havenoaffectoneitherItalianGDPorGNP. 76.SupposeJapanese-basedToshibaCorporationbuildsandoperatesanewcomputerfactoryintheUnitedStates. a.increaseU.S.GNPmorethanitincreasesU.S.GDP. b.increaseU.S.GDPmorethanitincreasesU.S.GNP. c.havenoaffectonU.S.GNP,butwillincreaseU.S.GDP. d.havenoaffectonU.S.GNPorGDP. 77.TheopeningofanewAmerican-ownedfactoryinAlgeriawouldtendtoincreaseAlgeria’sGDPmorethanitincreasesAlgeria’sGNPbecause a.someoftheincomefromthefactoryaccruestopeoplewhodonotliveinAlgeria. b.grossdomesticproductisincomeearnedwithinacountrybybothresidentsandnonresidents,whereasgrossnationalproductistheincomeearnedbyresidentsofacountrywhileproducingbothathomeandabroad. c.alloftheincomefromthefactoryisincludedinAlgeria’sGDP. d.Alloftheabovearecorrect. 78.IfaJapanesecompanyopensanewfactoryinSouthKorea,itmakes a.foreigndirectinvestment.ThefactorywillmakeabiggerimpactonSouthKorea’sGDPthanonitsGNP. b.foreigndirectinvestment.ThefactorywillmakeabiggerimpactonSouthKorea’sGNPthanonitsGDP. c.foreignportfolioinvestment.ThefactorywillmakeabiggerimpactonSouthKorea’sGDPthanonitsGNP. d.foreignportfolioinvestment.ThefactorywillmakeabiggerimpactonSouthKorea’sGNPthanonitsGDP. 79.WhenChileexperiencesinvestmentfromabroad,itexperiences,asaresult, a.anincreaseinproductivity. b.adecreaseinGrossNationalProduct(GNP). c.lowerwagesforChileanworkers. d.Noneoftheaboveiscorrect. 80.IfcompaniesfromforeigncountriesbuildandoperatefactoriesinChina,thenChina’sproductivity a.andthewagesofChineseworkersincrease. b.increasesbutthewagesofChineseworkersdecrease. c.decreasesbutthewagesofChineseworkersincrease. d.andthewagesofChineseworkersdecrease.    

    68.Way Living sells unfinished oak shelves for $35 each. Budgeted sales for the year are expected to be 4,000 shelves. Each shelf requires 4 linear feet of wood to produce. The cost of wood is $4.80 per linear foot. Direct labor is $6.00 per shelf. Variable overhead and fixed overhead costs per unfinished shelf are $1.00 and $0.50 respectively. Way Living is considering […]

    71) Refer to Table 11-12. Which of the following statements is true? A) Neither Perfect nor Florabunda have a dominant strategy. B) Perfect’s dominant strategy is to offer same-day delivery; Florabunda’s dominant strategy is to not offer same-day delivery. C) Florabunda’s dominant strategy is to offer same-day delivery; Perfect’s dominant strategy is to not offer same-day delivery. D) The dominant strategy for both […]