If there is currently a shortage of dollars, which of the following would you expect to
see in the foreign exchange market?
A) The dollar will appreciate.
B) The dollar will depreciate.
C) There will be an increase in the demand for dollars.
D) There will be an increase in the supply of dollars.
According to a Wall Street Journal article, hhgregg has differentiated itself from its
competition, particularly from large chain stores such as Best Buy
A) by charging lower prices.
B) by providing better customer service.
C) by selling inferior products.
D) by offering discounts for cash sales.
David Myers, former controller for WorldCom, pleaded guilty to falsely reported costs
for WorldCom that were ________ than they actually were, resulting in reported
accounting profits for WorldCom that were ________ than their actual level.
A) higher; higher
B) lower; higher
C) lower; lower
D) higher; lower
Under the Bretton Woods exchange rate system, ________ could sell their dollars to the
American government in exchange for gold.
A) foreign central banks
B) American citizens
C) foreign citizens
D) all of the above
Expansionary monetary policy refers to the ________ to increase real GDP.
A) government’s increasing spending and lowering taxes
B) government’s decreasing spending and raising taxes
C) Federal Reserve’s increasing the money supply and decreasing interest rates
D) Federal Reserve’s decreasing the money supply and increasing interest rates
When BMW, a German company, purchases a welding machine that was made in
Toronto, the purchase is
A) both a German and a Canadian import.
B) a German import and a Canadian export.
C) a German export and a Canadian import.
D) neither an export nor an import for either country.
The growing popularity of energy conservation has enticed large home improvement
stores like Home Depot and Lowes to offer tankless water heaters. How does the fact
that home improvement stores now offer these products affect the tankless water heater
market?
A) The demand curve for tankless water heaters shifts to the right.
B) The demand curve for tankless water heaters shifts to the left.
C) The supply curve for tankless water heaters shifts to the right.
D) The supply curve for tankless water heaters shifts to the left.
Table 9-3
Bryce and Tina are artisans who produce homemade candles and soap. Table 9-3 lists
the number of candles and bars of soap Bryce and Tina can each produce in one month.
Select the statement that accurately interprets the data in the table.
A) Bryce has a greater opportunity cost than Tina for making candles.
B) Bryce’s opportunity cost for making candles is less than Tina’s.
C) Tina has a greater opportunity cost than Bryce for making candles.
D) Bryce’s opportunity cost for making candles and making soap are both greater than
Tina’s.
Dividends are
A) financial securities which represent ownership in a corporation.
B) the yearly payments associated with bonds.
C) the interest rate paid on shares of stock.
D) payments by a corporation to its shareholders.
Which of the following is not a characteristic of indifference curves?
A) Indifference curves cannot intersect.
B) Indifference curves are usually bowed in, or convex.
C) The slope of an indifference curve is negative.
D) The closer to the origin, the greater the utility level.
The term “property rights” refers to
A) the physical possession of a house or any other property which the owner legally
purchased.
B) the ability to exercise control over one’s own resources within the confines of the
law.
C) the government’s right to appropriate land from wealthy land owners to redistribute
to peasants.
D) the right of a business not to have its assets confiscated by the government in the
event that the business is accused of committing fraud.
An example of assets that are included in ________ would be stocks, bonds, and
savings accounts.
A) household wealth
B) household income
C) planned investment
D) consumer purchases
Joss is a marketing consultant. Iris and Daphne are potential customers interested in
commissioning Joss to undertake a market survey and compile the findings in a report.
Iris is willing to pay $500 for the service while Daphne is willing to pay $800. Suppose
that the opportunity cost of Joss’s time is $1,200. Assume that Iris and Daphne do not
know each other. If Joss charges the same price per copy to both Iris and Daphne,
A) the report will not get written.
B) only Daphne will commission the job and the report will be written.
C) both Iris and Daphne will commission the job and the report will be written.
D) no conclusion can be drawn without information on the price.
Consumer surplus in a market for a product would be equal to ________ if the market
price was zero.
A) zero
B) the area between the supply curve and the demand curve
C) the area above the supply curve
D) the area under the demand curve