51) Which term refers to a wide array of injuries caused by repetitive physical movements? A) Occupational stress syndrome B) Cumulative trauma disorder C) Occupational impairment D) Carpal tunnel syndrome   52) For employers, what is the primary problem associated with cumulative trauma disorders? A) Negligent hiring charges B) Risk of employee sabotage C) Lost employee work days D) Lack of high-deductible insurance […]

  71. Richard operates a hair styling boutique out of his home. The boutique occupies 420 of the home’s 1,200 square feet of floor space. Other information is as follows:  Gross income from the boutique$10,000 Supplies for the boutique$ 2,400 Depreciation on total residence$12,000 Utilities for total residence$ 6,000 What amount of income or loss from the boutique should Richard show on his return? a. $0 income […]

    36.              During 2010, cash payments for wages totaled $954,500, while wages payable decreased by $67,800. Wages expense reported on the income statement equaled: A)$  818,900 B)$  886,700 C)$1,022,300 D)$1,090,100   37.              On a statement of cash flows using the indirect format, depreciation expense is: A)deducted from net income in the operating activities section B)included as an outflow in the investing activities section C)added […]

  Figure 6-4     20) Refer to Figure 6-4. Which of the following statements is true about the price elasticity of demand? A) The elasticity coefficient is constant along the demand curve. B) The elastic portion of a straight-line downward-sloping demand curve corresponds to the segment above the midpoint. C) The inelastic portion of the demand curve corresponds to the segment above the midpoint. […]

  11) Suppose the world price of widgets is $5 each. If a widget-importing country imposed a $2 per widget tariff, what price would that country’s consumers pay for widgets? A) $10 B) $7 C) $5 D) $3 E) A price that is greater than $5 and less than $7   12) Which of the following chain of events occurs when a tariff is imposed […]

  26.On January 1, 2015, Jackson Corporation issued a 4-year, 12%, $20,000 installment note payable. The payment on this note is $6,585 and is paid annually at year-end beginning December 31, 2015. Complete the following amortization schedule.   Date Cash Interest Expense Amortization Carrying Value Jan. 1, 2015         Dec. 31, 2015         Dec. 31, 2016       […]

    41) If the government reduces expenditure on goods and services by $30 billion, then aggregate demand A) decreases by more than $30 billion and real GDP decreases. B) decreases by $30 billion and real GDP decreases. C) increases by $30 billion and real GDP increases. D) increases and potential GDP increases. E) increases by more than $30 billion and real GDP increases.   […]

  8.3   Fairness and the Big Tradeoff   1) Consider the two principles of fair taxation, the benefits principle and the ability-to-pay principle, A) Both state that people should pay taxes according to the benefits they receive from public services. B) Both state that people should pay taxes according to how easily they can bear the burden. C) Both are based on horizontal equity. D) […]

  51) A credit card is A) money. B) barter money. C) not money. D) fiat money. E) not money, but the card’s credit line is money. 52) Credit cards are A) a form of money used to make purchases. B) a special ID card that is not money. C) a special ID card that is the same as money. D) a form of money […]

  181.RefertoFigure34-4.Whichofthefollowingeventscouldexplainashiftofthemoney-demandcurvefromMD1toMD2? a.adecreaseinthepricelevel b.adecreaseinthecostofborrowing c.anincreaseinthepricelevel d.anincreaseinthecostofborrowing 182.RefertoFigure34-4.Whichofthefollowingeventscouldexplainadecreaseintheequilibriuminterestratefromr1tor3? a.adecreaseinthepricelevel b.adecreaseinthenumberoffirmsbuildingnewfactoriesandbuyingnewequipment c.anincreaseinthepricelevel d.anincreaseinthenumberoffirmsbuildingnewfactoriesandbuyingnewequipment 183.RefertoFigure34-4.Supposethemoney-demandcurveiscurrentlyMD1.Ifthecurrentinterestrateisr2,then a.thequantityofmoneythatpeoplewanttoholdislessthanthequantityofmoneythattheFederalReservehassupplied. b.peoplewillrespondbysellinginterest-bearingbondsorbywithdrawingmoneyfrominterest-bearingbankaccounts. c.bondissuersandbankswillrespondbyloweringtheinterestratestheyoffer. d.inresponse,themoney-demandcurvewillshiftrightwardfromitscurrentpositiontoestablishequilibriuminthemoneymarket. 184.RefertoFigure34-4.Supposethemoney-demandcurveiscurrentlyMD2.Ifthecurrentinterestrateisr2,then a.inresponse,themoney-demandcurvewillshiftrightwardfromitscurrentpositiontoestablishequilibriuminthemoneymarket. b.peoplewillrespondbysellinginterest-bearingbondsorbywithdrawingmoneyfrominterest-bearingbankaccounts. c.bondissuersandbankswillrespondbyloweringtheinterestratestheyoffer. d.thereisashortageofmoney. 185.RefertoFigure34-4.Supposethecurrentequilibriuminterestrateisr1.Whichofthefollowingeventswouldcausetheequilibriuminterestratetoincrease? a.TheFederalReserveincreasesthemoneysupply. b.Moneydemandincreases. c.Thepriceleveldecreases. d.Alloftheabovearecorrect. 186.RefertoFigure34-4.Supposethecurrentequilibriuminterestrateisr3.Whichofthefollowingeventswouldcausetheequilibriuminterestratetodecrease? a.TheFederalReserveincreasesthemoneysupply. b.Moneydemanddecreases. c.Thepriceleveldecreases. d.Alloftheabovearecorrect. 187.RefertoFigure34-4.Supposethecurrentequilibriuminterestrateisr1.LetY1representthecorrespondingquantityofgoodsandservicesdemanded,andletP1representthecorrespondingpricelevel.Startingfromthissituation,iftheFederalReserveincreasesthemoneysupplyandifthepricelevelremainsatP1,then a.therewillbeanincreaseintheequilibriumquantityofgoodsandservicesdemanded. b.therewillbeadecreaseintheequilibriumquantityofgoodsandservicesdemanded. c.therewillbeanincreaseintheequilibriuminterestrate. d.fewerfirmswillchoosetoborrowtobuildnewfactoriesandbuynewequipment. 188.RefertoFigure34-4.Supposethecurrentequilibriuminterestrateisr3.LetY3representthecorrespondingquantityofgoodsandservicesdemanded,andletP3representthecorrespondingpricelevel.Startingfromthissituation,iftheFederalReservedecreasesthemoneysupplyandifthepricelevelremainsatP3,then a.therewillbeanincreaseintheequilibriumquantityofgoodsandservicesdemanded. b.therewillbeadecreaseintheequilibriuminterestrate. c.theaggregate-demandcurvewillshifttotheright. d.fewerfirmswillchoosetoborrowtobuildnewfactoriesandbuynewequipment. 189.“Monetarypolicycanbedescribedeitherintermsofthemoneysupplyorintermsoftheinterestrate.”Thisstatementamountstotheassertionthat a.rightwardshiftsofthemoney-supplycurvecannotoccuriftheFederalReservedecidestotargetaninterestrate. b.theactivitiesoftheFederalReserve’sbondtradersareirrelevantiftheFederalReservedecidestotargetan c.changesinmonetarypolicyaimedatexpandingaggregatedemandcanbedescribedeitherasincreasingthemoneysupplyorasincreasingtheinterestrate. d.ouranalysisofmonetarypolicyisnotfundamentallyalterediftheFederalReservedecidestotargetaninterestrate. 190.“Monetarypolicycanbedescribedeitherintermsofthemoneysupplyorintermsoftheinterestrate.”Thisstatementamountstotheassertionthat a.shiftsofthemoney-supplycurvecannotoccuriftheFederalReservedecidestotargetaninterestrate. b.theaggregate-demandcurvewillnotshiftinresponsetoFederalReserveactionsiftheFeddecidestotargetaninterestrate. c.changesinmonetarypolicyaimedatcontractingaggregatedemandcanbedescribedeitherasdecreasingthemoneysupplyorasraisingtheinterestrate. d.theactivitiesoftheFederalReserve’sbondtradersareirrelevantiftheFederalReservedecidestotargetan