Archives: Quiz

Suppose that television show A is much more popular than television show B.The equilibrium price for a ticket to view the taping of show A is $40 and the equilibrium price for a ticket to view the taping of show […]

If Jack bought 21 DVDs last year when his income was $30,000 and he buys 23 DVDs this year when his income is $35,000, then his income elasticity of demand is ______________ which means that DVDs are a(n) ______________ good […]

Marginal productivity theory implies that a worker will be paid an amount a. equal to his or her contribution to the productive process. b. less than his or her contribution to the productive process. c. greater than his or her […]

Which of the following statements represents a correct and sequentially accurate economic explanation? a. Good X is an inferior good and good Y is a substitute for X. Income rises, the demand for X falls, the price of X falls, […]

University A sets tuition at the equilibrium level based on price and then imposes entrance requirements in the form of minimum high school GPA and SAT scores. Enrollment at this school will likely be a. at the equilibrium level. b. […]

One of the conditions necessary for price discrimination is that the seller be a price searcher. a. True b. False Refer to Situation 27-1. If good X is produced in the U.S. the output per $1 of cost would be […]

Refer to Exhibit 4-3. Which of the following is true? Exhibit 4-3 a. If price P3 is set as a price ceiling it will have an effect on the market for good X. b. If price P3 is set as […]

Applying the least-cost rule to two factors, a firm will a. maximize profits at the output at which MRP = MFC. b. minimize costs when the MPP of factor A equals the MPP of factor B. c. minimize costs when […]

Refer to Exhibit 31-3. What is the cost to Firm B of eliminating 2 tons of pollution? a. $350 b. $250 c. $300 d. $140 e. $540 Rational (political) ignorance refers to a. some voters choosing not to vote in […]

In collective bargaining, a. union members act together as a single unit. b. each union member represents herself in labor-management negotiations. c. the objective of the union is to increase its bargaining power with management. d. a and c e. […]

In the supply-and-demand diagram of the market for peanut butter, the equilibrium point has moved down and to the right. What could have caused this? a. a fall in the price of peanuts b. a rise in the price of […]

Refer to Exhibit 22-5. Constant returns to scale are present between Exhibit 22-5 a. points A and B. b. points A and C. c. points B and C. d. points B and D. e. points C and D. Refer to […]

Refer to Exhibit 22-3. The total cost of producing 45 units of output is Exhibit 22-3 a. $1,100. b. $950. c. $1,050. d. $900. e. $1,000. Answer: a If income rises, the budget constraint a. moves inward toward the origin. […]

Refer to Exhibit 28-7. The marginal factor cost of increasing employment from 40 to 50 workers is Exhibit 28-7 a. $120. b. $18. c. $14. d. $160. e. $15 Total costs are a. fixed costs plus average total costs. b. […]

Refer to Exhibit 20-l. The demand for the good represented by demand curve D3 is Exhibit 20-1 a. inelastic. b. elastic. c. unit elastic. d. perfectly elastic. e. more elastic at higher prices than at lower prices. If the demand […]

Refer to Exhibit 4-1. Suppose the good shown is being sold at the $6 price ceiling. At a quantity of 75 units, what is the maximum per-unit price buyers would be willing to pay for a good “tied” to the […]

Economists believe that people’s wants are a. finite. b. infinite. c. irrational. d. unimportant because needs are more important than wants. Two major exports for the United States are a. clothing and office machines. b. soybeans and scientific instruments. c. […]

The Wheeler-Lea Act of 1938 was designed to close the merger loophole that remained in the Clayton Act. a. True b. False Marginal revenue is defined as a. the difference between costs and revenues. b. the change in total revenue […]

Total industry sales are $90 million. The top four firms (A, B, C, and D) account for sales of $15 million, $3.5 million, $1.3 million and $0.8 million, respectively. What is the four-firm concentration ratio? a. 9.40 b. 0.23 c. […]

Under certain circumstances, a congressional district may be a special interest group. a. True b. False Refer to Exhibit 34-3. The world price is PW. If a tariff is imposed, the price rises to PW + T. Because of the […]

Among the stated objectives of the National Collegiate Athletic Association (NCAA) regulations is to a. maintain the amateur standing of college athletes. b. prevent schools with more money from getting all of the good players. c. enhance the competitiveness of […]

If MPPX/PX > MPPY/PY, the firm should buy a. more of factor X and less of factor Y. b. less of factor X and more of factor Y. c. more of factor Y and the same amount of factor X. […]

A public franchise is a right granted a. to one firm by another firm; for example, McDonald’s Corporation grants restaurant owners a franchise to make its hamburgers. b. to a firm by government that prevents other firms from producing the […]

The instructors at College A are regularly late for their office hours.Based on a theory presented in the textbook, we would predict that the gap between the ______________student tuition and ___________equilibrium tuition is ___________ at College A. a. lower; higher; […]

Refer to Exhibit 39-4. The government feels that the present level of farmers’ total revenues is insufficient to support a reasonable standard of living and wants to raise it to exactly $3,000. This can be achieved by Exhibit 39-4 a. […]

Scarcity affects everyone, even billionaires. a. True b. False Suppose the government provides peanut butter to everyone free of charge and everyone consumes it to the point at which he receives no additional satisfaction from another spoonful. Is this necessarily […]

The practice of charging high prices for products sold in home markets while selling the same products in foreign markets at low prices, which do not cover the costs of exporting, is known as a. price discrimination. b. price gouging. […]

Increasing the wealth gap between nations and misusing and misallocating scarce resources are ethical issue accusations related to a. cultural differences. b. multinational corporations. c. consumerism. d. legal differences. e. international negotiations. Which of the following do nottypically engage in […]

_____________responsibilities relate to a business’s contributions to stakeholders. a. Economic b. Legal c. Ethical d. Voluntary e. Social responsiveness Which of the following was developed in the 1980s to guide corporate support for ethical conduct by establishing a method for […]

By prohibiting accounting firms from providing both auditing and consulting services to the same corporate clients without permission, the Sarbanes-Oxley Act is attempting to eliminate a. conflicts of interest. b. cronyism. c. reporting transparency. d. corporate espionage. e. dual reporting. […]

The thought experiment used by John Rawls that examined how individuals would formulate principles if they did not know what their future position in society would be is called a. Equality principle b. Utilitarian veil c. Liberty principle d. Universal […]

31.The_____leader demands instantaneouos bedience and focuse on punishing wrong behavior, achievement, initiative, and self-control. a. democratic b. coaching c. affiliative d. coercive e. pacesetting When a foreman orders an assembly-line employee to carry out a task, which the employee perceives […]

Under the________,CEOs and CFOs may be criminally prosecuted if they knowingly certify misleading financia statements. a. Sherman Antitrust Act b. Ethical Compliance Act c. Robinson-Patman Act d. Sarbanes-Oxley Act e. Sherman Antitrust Act Which of the following are nottypically secondary […]

Enlightened egoism a. is when an individual puts spiritual feelings above all others. b. centers completely on the short-term well-being of others. c. centers on one’s short-term self-interest. d. centers on one’s longterm selfinterest but takes others€ wellbeing into account. […]

Which of the following is nota question you need to ask when you suspect that workplace bullying has occurred? a. Is your boss treating you well and compensating you adequately? b. Is your boss asking obviously impossible things from you […]

Which of the following is nota characteristic of an ethical corporate culture? a. Management and the board demonstrate their commitment to strong controls through their communications and actions. b. Every employee is encouraged and required to have hands-on involvement in […]

In the absence of ethics programs, employees are likely to make decisions based on a. their observations of how their coworkers and superiors behave. b. how they and their family members behave at home. c. their conscience. d. their religious […]

Through_________,it is possible to quantify the trade-offs to determine whether to acce pt or reject environmentally-related activities and programs. a. risk management b. management voting c. board directives d. legal requirements e. customer input The model is founded in classic […]

Ethical culture is defined as a. rules, standards, and moral principles regarding what is right or wrong in specific situations. b. the establishment and enforcement of ethical codes throughout the organization. c. the development of rules and norms that are […]

The Clean Air Act: a. Allowed the EPA to track industrial chemicals b. Focuses on promoting alternative forms of energy c. Established national air quality standards d. Provides tax benefits to consumers who purchase hybrid cars e. Focuses on reducing […]

A person uncomfortable with his employer’s unspoken policy of hiring only white men is experiencing a. a conflict of interest. b. an ethical issue. c. a feeling of guilt. d. cognitive dissonance. e. a moral attribute. Which of the following […]

The Federal Sentencing Guidelines for Organizations set the tone for organizational ethics compliance programs by a. codifying into law incentives for organizations to take action such as developing ethical compliance programs to prevent misconduct. b. forcing all organizations to develop […]

______________is associated with a hostile workplace where someone considered a target is threatened, harassed, belittled, or verbally abused. a. A code of conduct b. Sexual harassment c. Coercive power d. Bullying e. Rewards Some economists believe that if companies address […]

A stakeholder orientation can be viewed as a(n) a. necessity for business success. b. continuum. c. polarizing concept. d. good marketing ploy. e. expensive proposition. Which of the following is nota benefit of ethics auditing? a. It can improve a […]

The 2010 passage of the Dodd-Frank Act proposed additional monetary incentives for whistle-blowers. A primary concern about these new incentives is a. they will encourage too many employees to attempt to blow the whistle on firms, even those that have […]

Which of the following cultures combines high levels of concern for people and performance? a. Apathetic culture b. Caring culture c. Integrative culture d. Exacting culture e. Cooperative culture Companies that will most likely be found in violation of procompetitive […]

Accountability, oversight, and control all fall under the definition and implementation of corporate a. profit. b. loyalty. c. care. d. governance. e. diligence. Some economists believe that if companies address economic and legal issues, they are satisfying the demands of […]

Those who have influence in a work group are referred to as significant others and include a. peers, managers, coworkers, and subordinates. b. family members, peers, and coworkers. c. spouses and friends. d. employees in similar job situations. e. employees […]

All of the following are true regarding institutions except a. Stakeholders closely align with institutions. b. The regulatory system aligns with political institutions. c. There is no clear link between institutional theory and the stakeholder orientation of management. d. Competition […]

This step of the RADAR model involves responding to the discovery of an ethical dilemma through communication both internally and externally. a. answer b. recover c. recognize d. avoid e. detect While social reports often discuss issues related to a […]