The primary source of revenue at the federal level is:
a. the corporate income tax.
b. the personal income tax.
c. property taxes.
d. sales taxes.
e. customs duties.
Full employment is the rate of employment that results when:
a. all the labor resources of the economy are employed full time.
b. cyclical unemployment has reached its maximum.
c. everybody who wants a job can find one.
d. only frictional and structural unemployment are present.
The aggregate demand curve is drawn downward-sloping, because increases in the
price level cause decreases in:
a. unemployment.
b. total spending (real GDP).
c. households’ savings.
d. the value of the dollar.
Lawton Corporation’s endÂofÂyear balance sheet consisted of the following amounts:
What amount should Lawton report on its balance sheet for totalassets?
a. $100,000
b. $161,000
c. $194,000
d. $195,000
Someone to whom a company has a debt is known as an investor.
a. True
b. False
Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-2, if the quantity
supplied of good X per year is Q1, the result is:
a. deadweight loss.
b. inefficiency.
c. underproduction.
d. all of the above are true.
e. none of the above are true.
All of the following are different expressions for net income except:
a. Profits
b. Excess of revenues over expenses
c. Capital
d. Earnings
If a company has $152,000 of revenues, declares and pays $55,000 in dividends, and
has net income of $89,000, how much were expenses for the year?
a. $ 8,000
b. $ 63,000
c. $144,000
d. Unable to determine the amount due to incomplete information.
A shift occurs in the supply curve for salt when:
a. the price of salt increases.
b. improvements are made in the production process.
c. salt is found to be associated with high blood pressure.
d. consumers expect the price of salt to increase in the future.
M2 money includes all but which one of the following?
a. Checkable deposits.
b. Savings accounts.
c. Large denomination time deposits.
d. Money market deposit accounts.
e. Money market mutual accounts.
According to the interest rate effect, as the price level:
a. rises, people feel poorer and buy less.
b. rises, United States products become more expensive and foreigners buy less U.S.
goods.
c. rises, interest rates fall, and people buy less.
d. rises, interest rates rise, and people buy less.
e. falls, interest rates fall, and people buy less.