31.Jobsearch a.andfirmspayingwagesaboveequilibriumtoimproveworkerhealthbothcreatefrictionalunemployment. b.createsfrictionalunemployment,whilefirmspayingwagesaboveequilibriumtoimproveworkerhealthcreatesstructuralunemployment. c.createsstructuralunemployment,whilefirmspayingwagesaboveequilibriumtoimproveworkerhealthcreatesfrictionalunemployment. d.andfirmspayingwagesaboveequilibriumtoimproveworkerhealthbothcreatestructuralunemployment. 32.Whichofthefollowingisnotareasoneconomiesexperiencestructuralunemployment? a.jobsearch b.unions c.minimum-wagelaws d.efficiencywages 33.Whichofthefollowingcausesofunemploymentisnotassociatedwithawagerateabovethemarketequilibriumlevel? a.efficiencywages b.jobsearch c.minimum-wagelaws d.unions 34.Iftherewerenofactorskeepingwagesfromreachingequilibriumthentherewouldbeno a.cyclicalunemployment. b.frictionalunemployment. c.structuralunemployment. d.naturalrateofunemployment. 35.Minimum-wagelaws a.createfrictionalunemployment,whilefirmspayingwagesaboveequilibriumtoreduceworkerturnovercreatesstructuralunemployment. b.createstructuralunemployment,whilefirmspayingwagesaboveequilibriumtoreduceworkerturnovercreatesfrictionalunemployment. c.andfirmspayingwagesaboveequilibriumtoreduceworkerturnoverbothcreatestructuralunemployment. d.andfirmspayingwagesaboveequilibriumtoreduceworkerturnoverbothcreatefrictionalunemployment. 36.Whichofthefollowingcausesofunemploymentisassociatedwithawagerateabovethemarketequilibriumlevel? a.minimum-wagelaws b.unions c.efficiencywages d.Alloftheabovearecorrect. 37.Minimum-wagelaws,unions,andefficiencywagescontributeto a.bothstructuralunemploymentandthenaturalrateofunemployment. b.neitherstructuralunemploymentnorthenaturalrateofunemployment. c.structuralunemployment,butnotthenaturalrateofunemployment. d.thenaturalrateofunemployment,butnotstructuralunemployment. 38.Efficiencywages,minimum-wagelaws,andunionsallkeepwages a.belowtheequilibriumlevel,causingashortageoflabor. b.belowtheequilibriumlevel,causingasurplusoflabor. c.abovetheequilibriumlevel,causingashortageoflabor. d.abovetheequilibriumlevel,causingasurplusoflabor. 39.Minimum-wagelawsandunionsaresimilartoeachotherbutdifferentfromefficiencywagesinthatminimum-wagelawandunions a.causeunemployment,butefficiencywagesdonot. b.causethequantityoflaborsuppliedtoexceedthequantityoflabordemanded,butefficiencywagesdonot. c.causewagestobeabovetheequilibriumlevel. d.preventfirmsfromloweringwagesinthepresenceofasurplusofworkers. 40.Unions a.andfirmspayingwagesaboveequilibriumtoimproveworkereffortbothcreatefrictionalunemployment. b.createsfrictionalunemployment,whilefirmspayingwagesaboveequilibriumtoimproveworkereffortcreatesstructuralunemployment. c.createsstructuralunemployment,whilefirmspayingwagesaboveequilibriumtoimproveworkereffortcreatesfrictionalunemployment. d.andfirmspayingwagesaboveequilibriumtoimproveworkereffortbothcreatestructuralunemployment. 41.Whichfamouscompanyexecutiveintroducedaninnovativepaysystemthatisconsistentwiththetheoryofefficiencywages? a.LeeIococca b.SteveJobs c.MarkZuckerberg d.HenryFord 42.Intheearly1900s,HenryFordintroduceda a.high-wagepolicy,andthispolicyproducedmanyoftheeffectspredictedbyefficiency-wagetheory. b.high-wagepolicy,andthispolicyproducednoneoftheeffectspredictedbyefficiency-wagetheory. c.low-wagepolicy,andthispolicyproducedmanyoftheeffectspredictedbyefficiency-wagetheory. d.low-wagepolicy,andthispolicyproducednoneoftheeffectspredictedbyefficiency-wagetheory.    

  11.Whichofthefollowingstatementsiscorrectabouttheextentofdisagreementamongeconomists? a.Thereisagreatdealofagreementamongeconomistsonvirtuallyeveryeconomicissue. b.Thereisagreatdealofagreementamongeconomistsonmanyimportanteconomicissues. c.Alldisagreementsamongeconomistsareattributabletodifferencesintheirvalues. d.Alldisagreementsamongeconomistsareattributabletothefactthatdifferenteconomistshavedifferentdegreesoffaithinthevalidityofalternativeeconomictheories. 12.Asurveywhichsoughttheopinionofprofessionaleconomistsonfourteenpropositionsabouteconomicpolicyfoundthat a.therespondentswerealmostequallydividedonthepropositions. b.therespondentsfavoredthepropositionsbyaslightmargin. c.therespondentsdisagreedwiththepropositionsbyaslightmargin. d.therewasoverwhelmingendorsementofthepropositionsamongtherespondents. 13.Asurveyofprofessionaleconomistsrevealedthatmorethanthree-fourthsofthemagreedwithanumberofstatements,includingwhichofthefollowing? a.Tariffsandimportquotasusuallyreducegeneraleconomicwelfare. b.Alargefederalbudgetdeficithasanadverseeffectontheeconomy. c.Minimumwageincreasesunemploymentamongyoungandunskilledworkers. d.Alloftheabovearecorrect. 14.Asurveyofprofessionaleconomistsrevealedthatmorethanthree-fourthsofthemagreedwithfourteeneconomicpropositions.Whichofthefollowingisnotoneofthosepropositions? a.TheUnitedStatesshouldnotrestrictemployersfromoutsourcingworktoforeigncountries. b.TheUnitedStatesshouldwithdrawfromtheNorthAmericanFreeTradeAgreement(NAFTA). c.TheUnitedStatesshouldeliminateagriculturalsubsidies. d.Localandstategovernmentsshouldeliminatesubsidiestoprofessionalsportsfranchises. 15.Asurveyofprofessionaleconomistsrevealedthatmorethanthree-fourthsofthemagreedwithfourteeneconomicpropositions.Whichofthefollowingisnotoneofthosepropositions? a.Aceilingonrentsreducesthequantityandqualityofhousingavailable. b.Fiscalpolicyhasasignificantstimulativeimpactonalessthanfullyemployedeconomy. c.ThegapbetweenSocialSecurityfundsandexpenditureswillbecomeunsustainablylargewithinthenextfiftyyearsifcurrentpoliciesremainunchanged. d.TheUnitedStatesshouldimplementuniversalhealthcareforitscitizens. 16.Almostalleconomistsagreethatrentcontrol a.hasnoeffectontherentalincomeoflandlords. b.allowsthemarketforhousingtoworkmoreefficiently. c.adverselyaffectstheavailabilityandqualityofhousing. d.isaveryinexpensivewaytohelpthemostneedymembersofsociety. 17.Policiessuchasrentcontrolandtradebarrierspersistinspiteofthefactthateconomistsarevirtuallyunitedintheiroppositiontosuchpolicies,probablybecause a.economistshavenotyetconvincedthegeneralpublicthatthepoliciesareundesirable. b.economistsengageinpositiveanalysis,notnormativeanalysis. c.economistshavevaluesthataredifferentfromthevaluesofmostnon-economists. d.economists’theoriesarenoteasilyconfirmedorrefutedinlaboratoryanalysis. 18.Policiessuchasrentcontrolandtradebarrierspersist a.becauseeconomistsareaboutevenlydividedastothemeritsofthosepolicies. b.becausealmostalleconomistsagreethatthosepolicieshavenodiscernibleeconomiceffects. c.becausealmostalleconomistsagreethatthosepoliciesaredesirable. d.despitethefactthatalmostalleconomistsagreethatthosepoliciesareundesirable. 19.Almostalleconomistsagreethattariffsandimportquotas a.reducesgeneraleconomicwelfare. b.increasesgeneraleconomicwelfare. c.havenoeffectongeneraleconomicwelfare. d.stimulatealessthanfullyemployedeconomy. 20.Almostalleconomistsagreethatlocalandstategovernmentsshould a.eliminatesubsidiestoprofessionalsportsfranchises. b.increasesubsidiestoprofessionalsportsfranchises. c.copyeconomicpolicyfromWashington,D.C. d.preventcompaniesfromoutsourcingwork. 1.JohnMaynardKeynesreferredtoeconomicsasaneasysubject, a.atwhichveryfewexcel. b.butnotaseasyasphilosophyorthepuresciences. c.whichveryfewcanenjoy. d.whichdealsprimarilywithcommonsense. 2.HowdidtheinfluentialeconomistJohnMaynardKeynesexplainhisremarkthatthougheconomicsisaneasysubjectcomparedwiththehigherbranchesofphilosophyorpurescience,itisasubjectatwhichfewexcel? a.Mostpeoplewhostudyeconomicsarenotverybright. b.Goodeconomistsmustpossessararecombinationofgifts. c.Economicsisquiteboring;hence,peopletendtoloseinterestinitbeforemasteringit. d.Goodthinkersbecomefrustratedwitheconomicsbecauseitdoesnotmakeuseofthescientificmethod. 3.AccordingtoeconomistJohnMaynardKeynes,agreateconomistmustalsobea(n) a.mathematician. b.historian. c.philosopher. […]

  21) Which of the following statements is MOST accurate? A) The countries of southern Europe are better endowed with capital and skilled labor than the countries of northern Europe. B) The countries of northern Europe are better endowed with capital and skilled labor than the countries of southern Europe. C) EU products that make intensive use of high-skill labor are most likely to come […]

    131.Comparative financial statements for Cross, Inc. are shown below:   December 31 Assets2014              2013 Current assets: Cash$     89,103              $      68,203 Accounts receivable142,000135,000 Inventory96,70885,694 Prepaid expenses     21,203                     5,118 Total current assets349,014294,015 Property, plant and equipment, net                  822,576                 718,144 Total assets$1,171,590              $1,012,159   Liabilities and Stockholders’ Equity Current liabilities: Accounts payable$     85,443              $      62,394 Other current liabilities     38,112                    33,507 Total […]

    41) When unskilled teens earn less than college graduates, society answers the ________ question. A) how B) what C) for whom D) why E) social interest versus self-interest   42) Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care. Based on this observation, Canada has decided that “everyone, regardless of their ability […]

76.The following information is available for completed Job No. 402: Direct materials, $80,000; direct labor, $120,000; manufacturing overhead applied, $60,000; units produced, 5,000 units; units sold, 4,000 units. The cost of the finished goods on hand from this job is a.$40,000. b.$260,000. c.$52,000. d.$208,000. 77.Sportly, Inc. completed Job No. B14 during 2013. The job cost sheet listed the following: Direct materials$55,000 Direct labor$30,000 Manufacturing overhead […]

  9.6   Integrative Questions   1) Assume that the state of Missouri decided to place a tariff on every product produced outside the state in an effort to increase the state’s revenue and increase employment in the state. If Missouri did so, A) the state’s total output would definitely increase. B) workers with jobs in new firms replacing out-of-state imports would earn high income. C) […]

  41) If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000, and if the reserve requirement is 10 percent, then the bank has actual reserves of A) $14,000. B) $17,000. C) $22,000. D) $27,000.   42) A bank has excess reserves of $6,000 and demand deposit liabilities of $100,000 when the required reserve ratio is 20 percent. If the reserve […]

    51) When considering HR strategies regarding employee separations, managers must consider whether to: A) use layoffs or voluntary inducements to downsize a firm. B) encourage decentralization or centralization of the firm to better enhance employee relations. C) compensate long-term employees more than recent hires. D) create rigid job descriptions to separate the responsibilities of managers and subordinates.   52) When developing performance appraisals, […]

  1.3   Economic Models 1) Economic models do all of the following except A) answer economic questions. B) portray reality in all its minute details. C) make economic ideas explicit and concrete for use by decision makers. D) simplify some aspect of economic life. 2) All of the following are part of an economic model except A) assumptions. B) hypotheses. C) data. D) opinions. 3) […]