A Canadian company has subsidiaries in France, England, Canada, and in the USA. The company is ...
A Canadian company has subsidiaries in France, England, Canada, and in the USA. The company is somewhat vertically-integrated in that the Canadian subsidiary sells some of its output to the USA subsidiary which further processes the material. If the
Lance cashes a bond paying 5% per year and invests this $1,000,000 in his courier business. He quit ...
Lance cashes a bond paying 5% per year and invests this $1,000,000 in his courier business. He quit a $40,000-a-year job as a letter carrier to open the business. After one year he earned an accounting profit of $150,000. Depreciation costs were $10,
Arnie Ziffel has $20 per week to spend on any combination of pineapples and green tea. The price of
Arnie Ziffel has $20 per week to spend on any combination of pineapples and green tea. The price of a pineapple is $4 and the price of a bottle of green tea is $2. The table below shows Arnie's utility values. Use the table to answer the questio
Comparable worth advocates have proposed that employers be required by law to pay wage rates equal t
Comparable worth advocates have proposed that employers be required by law to pay wage rates equal to the value of the job. The most telling objection to this proposal is that A) employers will probably resist strenuously and successfully.
Adam got a job in a multinational company. He was told during the orientation session that he will ...
Adam got a job in a multinational company. He was told during the orientation session that he will not be terminated for poor performance during the first six months of his work. Adam immediately decided to put minimum effort into the job during thes
The most direct effect of an increase in the growth rate of average labor productivity would be an i
The most direct effect of an increase in the growth rate of average labor productivity would be an increase in A) the inflation rate. B) the long-run economic growth rate. C) the unemployment rate. D) imported goods.
Deciding how a society's products are distributed among its citizens answers the economic question ...
Deciding how a society's products are distributed among its citizens answers the economic question of A) where will the products be consumed. B) how will the products be produced. C) who consumes the products produced. D) wha
Many middle-to-older-aged men now claim they "need" Viagra (the male impotency wonder drug) for an e
Many middle-to-older-aged men now claim they "need" Viagra (the male impotency wonder drug) for an enjoyable sex life. The economic way of thinking predicts A) more men would be likely to claim they need Viagra if the price per pill we
A left-leaning politician probably: (Multiple Choice)
A left-leaning politician probably A) does not think like an economist. B) thinks equality of opportunity is more important than equality of outcomes. C) is more concerned with efficiency than with equity. D) is left-handed.
If a drought reduced by 20 percent the quantity of wheat available for consumption, by how much woul
If a drought reduced by 20 percent the quantity of wheat available for consumption, by how much would the price of wheat have to rise to clear the market if the price elasticity of demand was .25? A) 4 percent B) 4.5 percent C) 5 perce
When the fee paid to doctors for a medical service is set above the equilibrium price, and patients ...
When the fee paid to doctors for a medical service is set above the equilibrium price, and patients must pay for this service, we predict that A) this service is over-provided. B) there are shortages of this service. C) the price is ab
Which of the following would not be considered a supply-side policy?
Which of the following would not be considered a supply-side policy? A) decreasing taxes to increase the incentive to work B) investment tax credits for businesses to encourage investment C) a decrease in government regulations to give
Tom is willing to contribute $400 toward building a public park, Jack is willing to contribute $500, ...
Tom is willing to contribute $400 toward building a public park, Jack is willing to contribute $500, and Joe is willing to contribute $750. What is the total marginal value for the park if Tom, Jack, and Joe are the only residents in the neighborhood
When governments fix prices below market-clearing levels,
When governments fix prices below market-clearing levels, A) there is a decrease in demand. B) quantity supplied is greater than quantity demanded. C) quantity supplied equals quantity demanded. D) there is an increase in suppl
A left-leaning politician probably: (Multiple Choice)
A left-leaning politician probably A) does not think like an economist. B) thinks equality of outcomes is more important than equality of opportunity. C) is more concerned with efficiency than with equity. D) is left-handed.
Which is not an outcome of rent ceilings? A) a surplus of condominium housing B) black market rents above the rent-controlled prices C) black market rents below the rent-controlled prices D) long waiting lists for rent-controlled
Assume Sam and Jenn exchange gifts. Sam gives a gift that cost $20 but is only worth $10 to Jenn. ...
Assume Sam and Jenn exchange gifts. Sam gives a gift that cost $20 but is only worth $10 to Jenn. Jenn gives a gift that cost $25 but which Sam values at $15. Ignoring any benefits Sam and Jenn receive in the act of giving gifts, this exchange of gif
If a rise in the price of hockey pucks from $9 to $11 results in an increase in quantity supplied ...
If a rise in the price of hockey pucks from $9 to $11 results in an increase in quantity supplied from 4,000 to 6,000 units, the elasticity of supply using the midpoint formula is A) 0.5. B) 0.8. C) 1.0. D) 2.0. E) 20.0.
Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are ...
Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. Which bundle will Max choose? A) a B) b C) c D) d
You are considering the purchase of new equipment for your company and you havenarrowed down the ...
You are considering the purchase of new equipment for your company and you havenarrowed down the possibilities to two models which perform equally well. However, themethod of paying for the two models is different. Model A requires $5,000 per year pa
The Oh So Humble Bakery sells 300 muffins at a price of $1 per muffin. Its explicit costs for ...
The Oh So Humble Bakery sells 300 muffins at a price of $1 per muffin. Its explicit costs for producing 300 muffins are $250. The Oh So Humble Bakeryʹs economic profits are A) $35. B) $50. C) $250. D) indeterminate from this i
In 2011, Armenia had a real GDP of $4.21 billion and a population of 2.98 million. In 2012, real GDP ...
In 2011, Armenia had a real GDP of $4.21 billion and a population of 2.98 million. In 2012, real GDP was $4.59 billion and population was 2.97 million. What was Armenia's economic growth rate from 2011 to 2012? A) 0.38 percent B) 9.0 percent C) 3.
A fall in tuition fees increases the university's total revenue if the price elasticity of demand ...
A fall in tuition fees increases the university's total revenue if the price elasticity of demand for university education is A) negative. B) greater than zero but less than 1. C) equal to 1. D) greater than 1. E) l
When people say, "government officials act on the basis of the property rights which they perceive,"
When people say, "government officials act on the basis of the property rights which they perceive," they mean A) government officials are inherently conservative. B) government officials do not have to be concerned about informat
A backflush costing system that journalizes only when raw materials are purchased and when finished ...
A backflush costing system that journalizes only when raw materials are purchased and when finished goods are sold, will have which of the following results? A) It will encourage managers to produce safety stock. B) Conversion costs become
You are hired by the Bureau of Economic Analogies (BEA) as an economic consultant. The chairperson o
You are hired by the Bureau of Economic Analogies (BEA) as an economic consultant. The chairperson of the BEA tells you that he believes the current unemployment rate is too high. The unemployment rate can be reduced if aggregate output increases. He
Marvin Ltd. uses an automated process in its manufacturing operations. On November 1, the company ...
Marvin Ltd. uses an automated process in its manufacturing operations. On November 1, the company had 25,000 units in beginning work in process which were 80% complete with respect to conversion. During the month of November, it started 120,000 into
Davy Metal Company produces brass fittings. Davy's engineers estimate the production function ...
Davy Metal Company produces brass fittings. Davy's engineers estimate the production function represented below as relevant for their long-run capital-labor decisions. Q = 500L0.6K0.8, where Q = annual output measured in po
A competitive firm sells its product at a price of $0.10 per unit. Its total and marginal cost ...
A competitive firm sells its product at a price of $0.10 per unit. Its total and marginal cost functions are: TC = 5 - 0.5Q + 0.001Q2 MC = -0.5 + 0.002Q, where TC is total cost ($) and Q is output rate (units per time peri
The Bank of garland has $1 million in deposits and $500,000 in reserves. If excess reserves are equa
The Bank of garland has $1 million in deposits and $500,000 in reserves. If excess reserves are equal to $150,000, the required reserve ratio is: A) 15%. B) 65%. C) 20%. D) 35%.
From which of the following goods is it most difficult to exclude free riders?
From which of the following goods is it most difficult to exclude free riders? A) Tickets for the Newport Jazz Festival B) Food and beer sold at the Newport Jazz Festival C) Programs and souvenirs sold at the Newport Jazz Festival
From which of the following goods is it most difficult to exclude free riders?
From which of the following goods is it most difficult to exclude free riders? A) Afternoon swimming lessons at the YMCA B) The St. Patrick's Day Parade in Boston C) Bungy jumping at the state fair grounds D) Grandstand seati
Clinton Company sells two items, product A and product B. The company is considering dropping ...
Clinton Company sells two items, product A and product B. The company is considering dropping product B. It is expected that sales of product A will increase by 40% as a result. Dropping product B will allow the company to cancel its monthly equipmen
Which of the following statements is true of a barter system?
Which of the following statements is true of a barter system? a. In a barter system economy, no rates of exchange are defined. b. In a barter system economy, there are as many different rates of exchange as there are pairs of goods to tr
Lilly Davis has $5 per week to spend on any combination of ice cream and candy. The price of an ice
Lilly Davis has $5 per week to spend on any combination of ice cream and candy. The price of an ice cream cone is $2 and the price of a candy bar is $1. The table below shows Lilly's utility values. Use the table to answer the questions that fol
Laryssa buys 40 litres of gasoline a week at $1.00 per litre. When the price rose to $1.50 last ...
Laryssa buys 40 litres of gasoline a week at $1.00 per litre. When the price rose to $1.50 last summer, she bought only 30 litres a week. Because this 50% increase in price caused a 25% reduction in quantity demanded, Laryssa's demand is _______
LaserLife Printer Cartridge Company is a decentralized organization with several autonomous ...
LaserLife Printer Cartridge Company is a decentralized organization with several autonomous divisions. The division managers are evaluated, in part, on the basis of the change in their return on invested assets. Operating results for the Packer Divis
Which statement below is true for a price searcher?
Which statement below is true for a price searcher? A) Net revenue can only be positive. B) Net revenue can only be negative. C) Net revenue can only be zero. D) Net revenue can be positive, negative, or zero.
