Archives: Quiz

Zeelon Corporation stock may be summarized as follows: 100,000 authorized 90,000 issued 75,000 outstanding 15,000 treasury stock How many shares or proxies will have to be present for a quorum (assuming no special provision and that the Revised Act is […]

Which of the following is NOT a special relationship giving rise to a duty to act to aid or protect one in peril? a. Hotel and guest. b. Aunt and niece. c. School and student. d. None of these are […]

All of the following are characteristics of a corporation EXCEPT: a. it has perpetual existence. b. it is a legal entity of its own. c. it is able to be sued and to sue. d. it is usually managed by […]

Carmen needs quick cash, so she hits upon a scheme. She tells Frank she’s collecting for Laotian refugees. Frank writes a check for $100 payable to the order of Carmen. Carmen indorses the check and delivers it to Joanne, who […]

a. State and local governments require licenses for certain businesses and professional activities. Explain the difference between a regulatory licensing statute and a licensing statute enacted to raise revenue. b. Explain the significance in contract law between a regulatory license […]

Which of the following is correct with regard to the Bill of Rights? a. It serves as a restriction on the powers and authority of the federal government. b. It does not apply directly to the states, but the Supreme […]

To establish trespass to land, a plaintiff: a. must show an invasion that interferes with the plaintiff’s right of exclusive possession of property that is at least an indirect result of the defendant’s actions. b. need not show the plaintiff’s […]

__________ is a provision excusing one party from liability. a. Procedural unconscionability b. An exculpatory clause c. Substantive unconscionability d. Tortious conduct Which of the following is correct regarding a foreign corporation? a. A foreign corporation is incorporated in a […]

Larson & Son manufactured welders that frequently malfunctioned, setting clothing on fire and causing serious burns. Larson & Son sold all of its assets to Swenson Co., which continued to manufacture the Larson welder product line. Eighteen months after Swenson’s […]

Once a Chapter 13 plan has been confirmed, it may: a. be modified at the debtor’s request but only if the trustee agrees. b. be modified only if all unsecured creditors agree. c. not be modified. d. be modified at […]

Which of the following is true with regard to contractual relations between the principal and a third party? a. There is no liability on the part of the principal if the agent acts with implied authority. b. An undisclosed principal […]

Rachel agrees to sell Bill goods for $2,000. The value of the goods accepted is $1,500. If the goods had been as warranted, their value would have been $2,600. What are the buyer’s damages for breach of warranty? a. $500. […]

The Code greatly alters the common law doctrine of material breach by adopting what is known as the: a. perfect tender rule. b. anticipatory repudiation rule. c. prevention of performance rule. d. discharge by operation of law rule. a. What […]

Rule 10b-5 applies to: a. only a buyer of a registered security. b. only a seller of a registered security. c. any person who buys or sells only a registered security. d. any person who buys or sells any security. […]

The most important federal statutes governing hazardous substances include: a. SARA. b. CEQ. c. FIFRA. d. Both (a) and (c). Which of the following is NOT personal property? a. Trees that have been cut into logs. b. An air-conditioning system […]

The definition of business ethics includes which of the following points? a. It is a branch of applied ethics. b. It is fully codified in federal statutes. c. It has a central authority and universal standards. d. All of these […]

Strict liability can be avoided where: a. the seller uses due care and diligence in preparing the goods. b. the seller manufactures products of this type on a regular basis. c. the seller gives a disclaimer of the defect to […]

Which of the following is empowered to issue industry-wide safety standards for consumer products? a. UCCC. b. RESPA. c. FCCPA. d. CPSC. The person who files or commences a civil lawsuit is the: a. plaintiff. b. defendant. c. prosecuting attorney. […]

Which one of the following is NOT a personal defense? a. Infancy, to the extent that it is a defense to a simple contract. b. Breach of contract. c. Non-delivery of an instrument. d. Failure of consideration. Clint induces David, […]

Use the table below to answer the following question. What is the average total cost at an output level of four units? a. $1,200. b. $1,400. c. $1,500. d. $2,000. The longer the time period under study, a. the more […]

Consumers tend to maximize: a. marginal utility. b. marginal utility per dollar. c. total utility. d. money holdings. e. consumer surplus. Exhibit 5-8 Supply and demand curves for good X As shown in Exhibit 5-8, assuming goods X and Y […]

Other things constant, the price elasticity of demand for a product will be smaller (more inelastic) if: a. people spend a large share of their income on the product. b. people spend an insignificant share of their income on the […]

“Countries are poor because they cannot afford to save and invest” is called the: a. vicious circle of poverty. c. LDC trap. b. savings-investment trap. d. cycle of insufficient credit. \Suppose the quantity demanded of steak is 200 million pounds […]

Suppose there are two countries, X and Y. If the exchange rate, as measured in X’s currency, is currently 9, what do citizens of the nation of Y see when they read their newspapers? a. The exchange rate for X’s […]

Most of the world’s economies are mixed economies because _________. a. a cartel of powerful transnational firms demands it. b. the market system of allocation is always best. c. the command system of allocation is always best. d. government intervention […]

Negative externalities impose most of their costs: a. directly on consumers of polluting processes. b. whenever individual health is harmed in the production process. c. only in large cities. d. on individuals other than consumers of the polluting product. Exhibit […]

If a tripling of price triples the quantity of a good supplied, the price elasticity of supply for this good is: a. 3. b. 300. c. 1. d. 1. e. 3. Suppose that, in the long run, the price of […]

Labor resources: a. include only physical activities. b. are only counted as a resource if used in the production of other resources. c. include only skilled labor. d. include both physical and mental activities. e. include human effort involved in […]

If, at the point where MR = MC, the firm incurs losses, in the short run the firm should: a. shut down. b. increase output. c. decrease output. d. continue at its current output if P > AVC. e. continue […]

According to the law of supply: a. more of a good is desired by consumers as the price falls. b. less of a good is desired by consumers as the price rises. c. more of a good will be offered […]

Which of the following is not true about a production possibilities curve? The curve: a. indicates the combinations of goods and services that can be produced with given technology. b. indicates the efficient production points. c. indicates the non-efficient production […]

If you were told that the exchange rate between the U.S. dollar and the Canadian dollar was 1.2, that would mean that Canadians would have to spend ____ to buy a $12 watch in New York City. a. c and […]

Economics, according to its definition, studies how people: a. earn and spend money. c. make choices in the face of scarcity. b. invest in the stock and bond markets. d. supply goods in response to demand. In economics, investment refers […]

Exhibit 9-6 Monopoly When the monopolist is maximizing total profit in Exhibit 9-6, the average total cost of producing that output level is: a. $4. b. $6. c. $7. d. $8. e. $10. Which of the following statements is true? […]

Suppose that the Zubians can produce 1000 pounds of flour per hours, or catch 500 pounds of fish per hour. In contrast, the Zirconians can produce 1800 pounds of flour per hour, or catch 300 pounds of fish per hours. […]

The cross price elasticities among substitute goods will be extremely high when: a. b and d. b. they are very similar to each other. c. people are consuming them frequently. d. people consume them in equal quantities. e. they are […]

Exhibit 3-8 Demand and supply data for Video games In Exhibit 3-8, if there is a surplus of video games of 200 units, the current price of video games must be: a. $60. b. $55. c. $50. d. $45. e. […]

While waiting in line to buy a cheeseburger for $2 and a drink for 75 cents, Aaron notices that the restaurant has a value meal containing a cheeseburger, drink, and French fries for $3. For Aaron, the marginal cost of […]

Under long-run perfect competition, which of the following are the same (equal) at all levels of output? a. Price and marginal cost. b. Price and marginal revenue. c. Marginal cost and marginal revenue. d. All of these. An example of […]

Marginal utility is best computed as the ratio of: a. total utility to change in quantity consumed. b. the change in total utility to total quantity consumed. c. total quantity consumed to total utility. d. the change in total utility […]

Which of the following is a characteristic of capitalism? a. Equality of income. b. Government decision-making is preferred to decentralized decision-making. c. Market determination of prices and quantity. d. Government ownership of all capital. The principle of diminishing marginal utility […]

Suppose the president of a college argues that a 25 percent tuition increase will raise revenues for the college. It can be concluded that the president thinks that demand to attend this college is: a. elastic. c. unitary elastic. b. […]

The largest in-kind transfer program is: a. Transitory Assistance to Needy Families. b. Medicaid. c. Social Security. d. Food stamps. Exhibit 2-15 Production possibilities curve In Exhibit 2-15, the economy will experience the most future economic growth if it chooses […]

The marginal revenue product can be written as: a. TR / P. b. w / Q. c. MP  P. d. MRP  P. e. w  L. Exhibit 6-7 Marginal utility for sandwiches and sodas Refer to Exhibit 6-7. […]

An economist at the University of Alaska at Anchorage has been asked to explain why the price of Alaskan crude oil has fallen recently. In order to develop a model, the professor should take which steps? a. Identify the problem, […]

The opportunity cost of an economic decision is: a. the best alternative that was sacrificed. b. the amount of money needed to implement the decision. c. any land, labor, and capital that are wasted. d. all options that were lost […]

Exhibit 2-10 Production possibilities curve data Suppose an economy is faced with the production possibilities table shown in Exhibit 2-10. The second unit of capital goods production will cost ____ units of consumption goods, and the third unit of capital […]

Microeconomics is concerned with: a. some specific market in the economic system. b. the entire economic system. c. reducing national unemployment and inflation rates. d. what causes changes in the overall level of economic activity. Exhibit 1A-6 Straight line In […]

A U.S. citizen’s gift for famine relief in Somalia would be considered a: a. capital inflow. c. current account transaction. b. capital outflow. d. service trade transaction. A monopoly is: a. a seller of a highly advertised and differentiated product […]

If the price of a textbook rises and then students purchase fewer textbooks, an economic model can show a cause-and-effect relationship only if which of the following conditions holds: a. students’ incomes fall. b. tuition decreases. c. the number of […]