Archives: Quiz
978-0134083285 Chapter 2 Part 4
30 15) Which of the following represents the correct ordering of standard deviation of returns over the period 1926 to 2014 (from highest to lowest standard deviation of returns)? A) Treasury bills, long-term corporate bonds, long-term government bonds, common stocks […]
978-0134083285 Chapter 2 Part 3
21 Copyright © 2017 Pearson Education, Inc. 33) A “Dutch auction” was used by Google to raise money in 2004. A Dutch auction involves A) selling bonds in Europe. B) allowing investors to submit bids saying how many shares they‘d […]
978-0134083285 Chapter 2 Part 2
11 51) The telecommunications system that provides a national information linkup among brokers and dealers operating in the over-the-counter market is called A) NCIS. B) NSQA. C) NASDAQ. D) NASQ. Answer: C Diff: 1 Page Ref: 28 Keywords: NASDAQ, Over-the-Counter […]
978-0134083285 Chapter 2 Part 1
1 Foundations of Finance, 9e (Keown/Martin/Petty) Chapter 2 The Financial Markets and Interest Rates Learning Objective 2.1 1) Common stock is considered a short-term security because it has no maturity date and a long-term security is one with a maturity […]
978-0134083285 Chapter 1 Part 4
28 20) Limited partnerships are not as prevalent as corporations because A) limited partners can lose up to three times the amount they invested in the partnership if the business goes bankrupt. B) limited partnerships have the disadvantage of double […]
978-0134083285 Chapter 1 Part 3
21 66) The board of directors of Wireless, Inc. is considering two compensation plans for the CEO of the company. The first would pay the CEO a salary of $250,000 for the upcoming year. The second would pay the CEO […]
978-0134083285 Chapter 1 Part 2
11 31) The expected return on a riskless asset is greater than zero due to A) an expected return for delaying consumption. B) an expected return for opportunity costs. C) an expected return for taxes. D) irrational investors who believe […]
978-0134083285 Chapter 1 Part 1
1 Foundations of Finance, 9e (Keown/Martin/Petty) Chapter 1 An Introduction to the Foundations of Financial Management Learning Objective 1.1 1) Financial management deals with the maintenance and creation of economic value or wealth. Answer: TRUE Diff: 1 Page Ref: 3 […]
978-0134078816 Chapter 8 Part 3
21 68) If the marginal cost curve is below the average variable cost curve, then A) average variable costs are increasing. B) average variable costs are decreasing. C) marginal cost must be decreasing. D) average variable costs could either be […]
978-0134078816 Chapter 8 Part 2
11 33) Refer to Table 8.1. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, which of the following statements is true? A) The firm will use production technique […]
978-0134078816 Chapter 8 Part 1
1 Principles of Microeconomics, 12e (Case/Fair/Oster) Chapter 8 Short–Run Costs and Output Decisions 8.1 Costs in the Short Run 1) In the short run A) existing firms do not face limits imposed by a fixed input. B) all firms have […]
978-0134078816 Chapter 7 Part 9
78 49) Refer to Figure 7.10. If this firm’s cost of capital is $40 per unit and its cost of labor is $20 per unit, the isocost line represents a total cost of A) $1,000. B) $2,000. C) $3,000. D) […]
978-0134078816 Chapter 7 Part 8
71 A) $1,200. B) $1,800. C) $2,400. D) indeterminate from this information, as the price of labor is not given. Answer: B Diff: 2 Topic: Appendix: Isoquants and Isocosts Skill: Analytical AACSB: Analytical Thinking Learning Outcome: Micro–17 Refer to the […]
978-0134078816 Chapter 7 Part 7
61 145) A production function shows the greatest amount that a firm will produce given the amount of labor input. Answer: TRUE Diff: 1 Topic: The Production Process Skill: Conceptual AACSB: Reflective Thinking Learning Outcome: Micro–17 146) The additional output […]
978-0134078816 Chapter 7 Part 6
51 106) If diminishing marginal returns have already set in for Danica’s Dog Training Emporium and the marginal product of the fifth dog trainer is 18, then the marginal product of the fourth dog trainer must be A) negative. B) […]
978-0134078816 Chapter 7 Part 5
41 69) A firm is operating such that the marginal product of labor is 10 and the marginal product of capital is 20. The firm is minimizing its costs only if A) the wage is half the rental rate. B) […]
978-0134078816 Chapter 7 Part 4
31 37) Refer to Figure 7.4. The marginal product of the fourth worker is A) 8. B) 12.5. C) 48. D) 92. Answer: A Diff: 2 Topic: The Production Process Skill: Analytical AACSB: Analytical Thinking Learning Outcome: Micro–17 38) Refer […]
978-0134078816 Chapter 7 Part 3
21 7) Refer to Table 7.1. If the hourly wage rate is $10 and the hourly price of capital is $25, which production technology should be selected? A) A B) B C) C D) D Answer: B Diff: 2 Topic: […]
978-0134078816 Chapter 7 Part 2
11 34) The rate of return on capital that is just sufficient to keep owners and investors satisfied is called A) economic profit. B) a minimum efficient scale. C) the price–earnings ratio. D) a normal rate of return. Answer: D […]
978-0134078816 Chapter 7 Part 1
1 Principles of Microeconomics, 12e (Case/Fair/Oster) Chapter 7 The Production Process: The Behavior of Profit-Maximizing Firms 7.1 The Behavior of Profit-Maximizing Firms 1) Total revenue minus total cost is equal to A) the rate of return. B) marginal revenue. C) […]
978-0134078816 Chapter 6 Part 9
78 17) Refer to Figure 6.14. If the price of an ice cream cone is $3, Jason‘s income is A) $50. B) $375. C) $450. D) indeterminate because the price of ice cream sandwiches is not given. Answer: C Diff: […]
978-0134078816 Chapter 6 Part 8
71 14) In the labor market, the income and substitution effects work in the same direction. Answer: FALSE Diff: 1 Topic: Household Choice in Input Markets Skill: Conceptual AACSB: Reflective Thinking Learning Outcome: Micro–10 6.5 Appendix: Indifference Curves 1) Harry […]
978-0134078816 Chapter 6 Part 7
61 89) The diamond/water paradox helps to illustrate the concept of marginal value. Answer: TRUE Diff: 1 Topic: The Basis of Choice: Utility Skill: Conceptual AACSB: Reflective Thinking Learning Outcome: Micro–10 90) The law of diminishing marginal utility implies that […]
978-0134078816 Chapter 6 Part 6
51 53) ________ utility is the additional satisfaction gained by consuming ________ of a good. A) Marginal; all units B) Total; one more unit C) Total; no more units D) Marginal; one more unit Answer: D Diff: 2 Topic: The […]
978-0134078816 Chapter 6 Part 5
41 23) Refer to Table 6.1. Assume that a store is giving hamburgers and sodas away for free. Consumers can have as many sodas and hamburgers as they want, but the food has to be consumed one unit at a […]
978-0134078816 Chapter 6 Part 4
31 96) When the price of a good decreases, the budget constraint shifts out parallel to the original budget constraint. Answer: FALSE Diff: 1 Topic: Household Choices in Output Markets Skill: Conceptual AACSB: Reflective Thinking Learning Outcome: Micro–10 97) Assuming […]
978-0134078816 Chapter 6 Part 3
21 Copyright © 2017 Pearson Education, Inc. 64) Refer to Figure 6.5. Molly’s budget constraint is BD. Molly’s income is $375, the price of a DVD is $15 and the price of a CD is $25. At point D the […]
978-0134078816 Chapter 6 Part 2
11 33) Refer to Figure 6.2. Along budget constraint AC, the opportunity cost of one beer is A) 1/4 of a gardenburger. B) 1 gardenburger. C) 2 gardenburgers. D) changing as Mr. Lingle moves down his budget constraint. Answer: B […]
978-0134078816 Chapter 6 Part 1
1 Principles of Microeconomics, 12e (Case/Fair/Oster) Chapter 6 Household Behavior and Consumer Choice 6.1 Household Choice in Output Markets 1) Jane has $500 a week to spend on clothing and food. The price of clothing is $25 and the price […]
978-0134078816 Chapter 5 Part 6
48 6) Refer to Figure 5.7. The amount customers will pay per pumpkin after the imposition of the tax is A) $1.75. B) $3.00. C) $4.25. D) $7.25. Answer: D Diff: 2 Topic: Elasticity and Taxes Skill: Analytical AACSB: Analytical […]
978-0134078816 Chapter 5 Part 5
41 36) If two products are substitutes, the ________ elasticity of demand is ________. A) income; positive B) income; negative C) cross–price; positive D) cross–price; negative Answer: C Diff: 1 Topic: Other Important Elasticities Skill: Definition Learning Outcome: Micro-6 37) […]
978-0134078816 Chapter 5 Part 4
31 5) The income elasticity of demand A) measures the change in income necessary for a given change in quantity demanded. B) measures the responsiveness of income to changes in quantity demanded. C) measures the responsiveness of quantity demanded to […]
978-0134078816 Chapter 5 Part 3
21 33) At a price of $5, quantity demanded is 70; and at a price of $7, quantity demanded is 50. Since total revenue ________ by the price increase, demand must be ________. A) is increased; elastic B) is decreased; […]
978-0134078816 Chapter 5 Part 2
11 Copyright © 2017 Pearson Education, Inc. 3) Refer to Figure 5.2. If the price of a hamburger increases from $2 to $4, the price elasticity of demand equals ________. Use the midpoint formula. A) –0.33 B) –2.0 C) –3.0 […]
978-0134078816 Chapter 5 Part 1
1 Principles of Microeconomics, 12e (Case/Fair/Oster) Chapter 5 Elasticity 5.1 Price Elasticity of Demand Refer to the information provided in Figure 5.1 below to answer the question(s) that follow. Figure 5.1 1) Refer to Figure 5.1. The demand for tickets […]
978-0134078816 Chapter 4 Part 5
40 7) Refer to Figure 4.6. If price is P1, consumer surplus is area A) A. B) A + B + E. C) G. D) B + C + E + F + G. Answer: B Diff: 2 Topic: Supply […]
978-0134078816 Chapter 4 Part 4
31 5) Refer to Figure 4.4. Assume that initially there is free trade. If the United States then imposes a $25 tax per barrel of imported oil, the tax revenue generated will equal A) $25 million per day. B) $50 […]
978-0134078816 Chapter 4 Part 3
21 68) If the market price of green tea is $20.00 per pound and the government will not allow green tea growers to charge more than $25.00 per pound of green tea, which of the following will happen? A) Demand […]
978-0134078816 Chapter 4 Part 2
11 Refer to the information provided in Figure 4.3 below to answer the question(s) that follow. Figure 4.3 33) Refer to Figure 4.3. An example of an effective price ceiling would be government setting the price of pencils at A) […]
978-0134078816 Chapter 4 Part 1
1 Principles of Microeconomics, 12e (Case/Fair/Oster) Chapter 4 Demand and Supply Applications 4.1 The Price System: Rationing and Allocating Resources 1) In the short run, it is necessary to nonprice ration a good whenever ________ exists. A) excess demand B) […]
978-0134078816 Chapter 3 Part 10
87 105) Refer to Scenario 3.3. If at the same time of the mustard recall, consumer income also decreased. Then, ceteris paribus, in the market for mustard this would have caused A) both the equilibrium price and quantity to decrease. […]
978-0134078816 Chapter 3 Part 9
81 85) Related to the Economics in Practice on page 66: One explanation for the increase in the price of the Baltimore newspaper is the increase in the cost of newsprint. This would cause the ________ of Baltimore newspapers to […]
978-0134078816 Chapter 3 Part 8
71 57) Refer to Figure 3.16. When the economy moves from Point E to Point B, there has been A) an increase in supply and an increase in quantity demanded. B) an increase in both supply and demand. C) a […]
978-0134078816 Chapter 3 Part 7
61 27) Refer to Table 3.2. In this market there will be an excess demand of 1,000 cheeseburgers at a price of A) $5. B) $6. C) $8. D) $9. Answer: A Diff: 2 Topic: Market Equilibrium Skill: Analytical AACSB: […]
978-0134078816 Chapter 3 Part 6
51 37) The price of circuit boards used in the manufacturing of LCD televisions has fallen. This will lead to ________ LCD televisions. A) an increase in the supply of B) a decrease in the supply of C) an increase […]
978-0134078816 Chapter 3 Part 5
41 10) Refer to Figure 3.10. An increase in the wage rate of pizza makers will cause a movement from Point B on supply curve S2 to A) Point A on supply curve S2. B) Point C on supply curve […]
978-0134078816 Chapter 3 Part 4
31 68) As Tabitha consumes more ice cream sundaes within a given period of time, it is likely that each additional sundae consumed will A) bring her successively more satisfaction. B) bring her successively less satisfaction. C) increase her quantity […]
978-0134078816 Chapter 3 Part 3
21 39) Refer to Figure 3.7. An increase in quantity demanded is represented by the movement A) from D2 to D1. B) from D2 to D3. C) along D2 from Point B to point A. D) along D2 from Point […]
978-0134078816 Chapter 3 Part 2
11 11) If the demand for coffee decreases as income decreases, coffee is a(n) A) normal good. B) inferior good. C) substitute good. D) complementary good. Answer: A Diff: 2 Topic: Demand in Product / Output Markets Skill: Conceptual AACSB: […]
978-0134078816 Chapter 3 Part 1
1 Principles of Microeconomics, 12e (Case/Fair/Oster) Chapter 3 Demand, Supply, and Market Equilibrium 3.1 Firms and Households: The Basic Decision–Making Units 1) Michael Dell was the first individual who sold computers by mail order. The company founded by Dell is […]