ACCOUNTING
Multiple Choice
Learning curve effects can be incorporated
a. into performance evaluations.
b. into production schedules.
c. when using costs to price products.
d. into all of the above.
Click here for the SOLUTION
Saturday, July 30, 2011
1. To complete the first setup on a new machine took an employee 200 minutes
ACCOUNTING
Multiple Choice
To complete the first setup on a new machine took an employee 200 minutes. Using an 80% incremental unit-time learning model indicates that the second setup on the new machine is expected to take
a. 160 minutes.
b. 120 minutes.
c. 80 minutes.
d. 60 minutes.
Click here for the SOLUTION
Multiple Choice
To complete the first setup on a new machine took an employee 200 minutes. Using an 80% incremental unit-time learning model indicates that the second setup on the new machine is expected to take
a. 160 minutes.
b. 120 minutes.
c. 80 minutes.
d. 60 minutes.
Click here for the SOLUTION
To complete the first setup on a new machine took an employee 200 minutes
ACCOUNTING
Multiple Choice
To complete the first setup on a new machine took an employee 200 minutes. Using an 80% cumulative average-time learning curve indicates that the second setup on the new machine is expected to take
a. 160 minutes.
b. 120 minutes.
c. 80 minutes.
d. 60 minutes.
Click here for the SOLUTION
Multiple Choice
To complete the first setup on a new machine took an employee 200 minutes. Using an 80% cumulative average-time learning curve indicates that the second setup on the new machine is expected to take
a. 160 minutes.
b. 120 minutes.
c. 80 minutes.
d. 60 minutes.
Click here for the SOLUTION
An experience curve
ACCOUNTING
Multiple Choice
An experience curve
a. is a narrower application of the learning curve.
b. measures the decline in cost per unit as production decreases for various value-chain functions such as marketing as production increases.
c. only measures the decline in labor-hours per unit as units produced increases.
d. measures the increase in cost per unit as productivity increases.
Click here for the SOLUTION
Multiple Choice
An experience curve
a. is a narrower application of the learning curve.
b. measures the decline in cost per unit as production decreases for various value-chain functions such as marketing as production increases.
c. only measures the decline in labor-hours per unit as units produced increases.
d. measures the increase in cost per unit as productivity increases.
Click here for the SOLUTION
A learning curve is a function
ACCOUNTING
Multiple Choice
A learning curve is a function
a. that measures the decline in labor-hours per unit due to workers becoming better at a job.
b. that increases at a greater rate as workers become more familiar with their tasks.
c. where unit costs increase as productivity increases.
d. that is linear.
Click here for the SOLUTION
Multiple Choice
A learning curve is a function
a. that measures the decline in labor-hours per unit due to workers becoming better at a job.
b. that increases at a greater rate as workers become more familiar with their tasks.
c. where unit costs increase as productivity increases.
d. that is linear.
Click here for the SOLUTION
A step variable-cost function
ACCOUNTING
Multiple Choice
A step variable-cost function
a. is fixed over the long run, but not over the short run.
b. is often approximated with a continuous variable-cost function.
c. remains the same over a wide range of activity.
d. example includes adding additional warehouse space.
Click here for the SOLUTION
Multiple Choice
A step variable-cost function
a. is fixed over the long run, but not over the short run.
b. is often approximated with a continuous variable-cost function.
c. remains the same over a wide range of activity.
d. example includes adding additional warehouse space.
Click here for the SOLUTION
A step fixed-cost function
ACCOUNTING
Multiple Choice
A step fixed-cost function
a. is fixed over the short run, but not over the long run.
b. is often approximated with a continuous variable-cost function.
c. remains the same over a narrow range of activity.
d. example includes setup costs.
Click here for the SOLUTION
Multiple Choice
A step fixed-cost function
a. is fixed over the short run, but not over the long run.
b. is often approximated with a continuous variable-cost function.
c. remains the same over a narrow range of activity.
d. example includes setup costs.
Click here for the SOLUTION
Examples of nonlinear cost functions include all EXCEPT
ACCOUNTING
Multiple Choice
Examples of nonlinear cost functions include all EXCEPT
a. step variable-cost functions.
b. step fixed-cost functions.
c. learning curves.
d. mixed cost functions.
Click here for the SOLUTION
Multiple Choice
Examples of nonlinear cost functions include all EXCEPT
a. step variable-cost functions.
b. step fixed-cost functions.
c. learning curves.
d. mixed cost functions.
Click here for the SOLUTION
Over the short run, a nonlinear cost function would MOST likely result from all EXCEPT
ACCOUNTING
Multiple Choice
Over the short run, a nonlinear cost function would MOST likely result from all EXCEPT
a. quantity discounts for each additional 10,000 parts purchased.
b. purchasing another $250,000 printing machine to double production.
c. hiring a third production supervisor.
d. incurring greater total utility costs for each machine-hour of operation.
Click here for the SOLUTION
Multiple Choice
Over the short run, a nonlinear cost function would MOST likely result from all EXCEPT
a. quantity discounts for each additional 10,000 parts purchased.
b. purchasing another $250,000 printing machine to double production.
c. hiring a third production supervisor.
d. incurring greater total utility costs for each machine-hour of operation.
Click here for the SOLUTION
When using activity-based costing all of the following are true EXCEPT that
ACCOUNTING
Multiple Choice
When using activity-based costing all of the following are true EXCEPT that
a. all cost drivers should be output unit-level cost drivers.
b. there are a great number and variety of cost drivers and cost pools.
c. industrial engineering, conference, and regression analysis can be used to estimate slope coefficients.
d. the more cost pools, the greater the chance of estimation error.
Click here for the SOLUTION
Multiple Choice
When using activity-based costing all of the following are true EXCEPT that
a. all cost drivers should be output unit-level cost drivers.
b. there are a great number and variety of cost drivers and cost pools.
c. industrial engineering, conference, and regression analysis can be used to estimate slope coefficients.
d. the more cost pools, the greater the chance of estimation error.
Click here for the SOLUTION
The smaller the residual term
ACCOUNTING
Multiple Choice
The smaller the residual term
a. the stronger the relationship between the cost driver and costs.
b. the weaker the relationship between the cost driver and costs.
c. the steeper the slope of the cost function.
d. the gentler the slope of the cost function.
Click here for the SOLUTION
Multiple Choice
The smaller the residual term
a. the stronger the relationship between the cost driver and costs.
b. the weaker the relationship between the cost driver and costs.
c. the steeper the slope of the cost function.
d. the gentler the slope of the cost function.
Click here for the SOLUTION
A steeply sloped regression line indicates
ACCOUNTING
Multiple Choice
A steeply sloped regression line indicates
a. a strong relationship between the cost driver and costs.
b. a greater proportion of fixed costs than variable costs.
c. an economically plausible relationship exists.
d. management should cut costs.
Click here for the SOLUTION
Multiple Choice
A steeply sloped regression line indicates
a. a strong relationship between the cost driver and costs.
b. a greater proportion of fixed costs than variable costs.
c. an economically plausible relationship exists.
d. management should cut costs.
Click here for the SOLUTION
Goodness-of-fit measures how well the predicted values in a cost estimating equation
ACCOUNTING
Multiple Choice
Goodness-of-fit measures how well the predicted values in a cost estimating equation
a. match the cost driver.
b. determine the level of activity.
c. match the actual cost observations.
d. rely on the independent variable.
Click here for the SOLUTION
Multiple Choice
Goodness-of-fit measures how well the predicted values in a cost estimating equation
a. match the cost driver.
b. determine the level of activity.
c. match the actual cost observations.
d. rely on the independent variable.
Click here for the SOLUTION
If machine maintenance is scheduled at a time when production is at a low level then
ACCOUNTING
Multiple Choice
If machine maintenance is scheduled at a time when production is at a low level then
a. low production is the cost driver of high repair costs.
b. an understanding of operations is needed to determine an appropriate cost driver.
c. low production should be avoided since it is the cause of machine maintenance.
d. machine maintenance cannot be accurately predicted.
Click here for the SOLUTION
Multiple Choice
If machine maintenance is scheduled at a time when production is at a low level then
a. low production is the cost driver of high repair costs.
b. an understanding of operations is needed to determine an appropriate cost driver.
c. low production should be avoided since it is the cause of machine maintenance.
d. machine maintenance cannot be accurately predicted.
Click here for the SOLUTION
A cost function with a lower slope coefficient than a year ago could indicate that
ACCOUNTING
Multiple Choice
A cost function with a lower slope coefficient than a year ago could indicate that
a. total variable costs have decreased.
b. new cost-cutting initiatives are beneficial.
c. production has decreased.
d. rental costs have decreased.
Click here for the SOLUTION
Multiple Choice
A cost function with a lower slope coefficient than a year ago could indicate that
a. total variable costs have decreased.
b. new cost-cutting initiatives are beneficial.
c. production has decreased.
d. rental costs have decreased.
Click here for the SOLUTION
A cost function with a lower constant than a year ago could indicate all EXCEPT
ACCOUNTING
Multiple Choice
A cost function with a lower constant than a year ago could indicate all EXCEPT
a. last year’s cost function was inaccurate.
b. a new operations manager is being effective.
c. the sales commission percentage has decreased.
d. insurance premiums have decreased.
Click here for the SOLUTION
Multiple Choice
A cost function with a lower constant than a year ago could indicate all EXCEPT
a. last year’s cost function was inaccurate.
b. a new operations manager is being effective.
c. the sales commission percentage has decreased.
d. insurance premiums have decreased.
Click here for the SOLUTION
An inaccurate cost function with a constant that is estimated too high may MOST likely result in
ACCOUNTING
Multiple Choice
An inaccurate cost function with a constant that is estimated too high may MOST likely result in
a. evaluating a weak manager as providing strong performance.
b. promoting a product that is actually less profitable than
budgeted
c. predicting total costs that are too low
d. replicating processes that are truly cost saving
Click here for the SOLUTION
Multiple Choice
An inaccurate cost function with a constant that is estimated too high may MOST likely result in
a. evaluating a weak manager as providing strong performance.
b. promoting a product that is actually less profitable than
budgeted
c. predicting total costs that are too low
d. replicating processes that are truly cost saving
Click here for the SOLUTION
What is the estimated total cost at an operating level of 2,850 hours?
ACCOUNTING
Multiple Choice
The Gangwere Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Gangwere Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
Month Cost Hours
January $40,000 3,500
February 24,400 2,000
March 31,280 2,450
April 36,400 3,000
May 44,160 3,900
June 42,400 3,740
What is the estimated total cost at an operating level of 2,850 hours?
a. $25,692
b. $33,240
c. $32,016
d. $34,736
Click here for the SOLUTION
Multiple Choice
The Gangwere Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Gangwere Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
Month Cost Hours
January $40,000 3,500
February 24,400 2,000
March 31,280 2,450
April 36,400 3,000
May 44,160 3,900
June 42,400 3,740
What is the estimated total cost at an operating level of 2,850 hours?
a. $25,692
b. $33,240
c. $32,016
d. $34,736
Click here for the SOLUTION
2. How is the cost function stated?
ACCOUNTING
Multiple Choice
The Gangwere Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Gangwere Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
Month Cost Hours
January $40,000 3,500
February 24,400 2,000
March 31,280 2,450
April 36,400 3,000
May 44,160 3,900
June 42,400 3,740
How is the cost function stated?
a. y = $26,672 + $1.84X
b. y = $21,360 + $1.52X
c. y = $10,112 + $8.64X
d. y = $3,600 + $10.40X
Click here for the SOLUTION
Multiple Choice
The Gangwere Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Gangwere Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
Month Cost Hours
January $40,000 3,500
February 24,400 2,000
March 31,280 2,450
April 36,400 3,000
May 44,160 3,900
June 42,400 3,740
How is the cost function stated?
a. y = $26,672 + $1.84X
b. y = $21,360 + $1.52X
c. y = $10,112 + $8.64X
d. y = $3,600 + $10.40X
Click here for the SOLUTION
Thursday, July 21, 2011
If a state government finances treatment facilities for alcoholics out of revenues from a tax on liquor, it is
ECONOMICS
Multiple Choice
If a state government finances treatment facilities for alcoholics out of revenues from a tax on liquor, it is
a.basing its taxation on ability to pay
b.levying a proportional tax
c.able to afford fewer treatment facilities when liquor sales decrease
d.discouraging alcoholics from seeking treatment at government facilities
e.providing a service that the private sector cannot provide
Click here for the SOLUTION
Multiple Choice
If a state government finances treatment facilities for alcoholics out of revenues from a tax on liquor, it is
a.basing its taxation on ability to pay
b.levying a proportional tax
c.able to afford fewer treatment facilities when liquor sales decrease
d.discouraging alcoholics from seeking treatment at government facilities
e.providing a service that the private sector cannot provide
Click here for the SOLUTION
Taxes collected on the basis of the benefits-received principle
ECONOMICS
Multiple Choice
Taxes collected on the basis of the benefits-received principle
a.provide the states with their main sources of revenue
b.tend to redistribute income from rich to poor
c.collect the same total amount from each individual
d.connect the revenue side of the budget with the spending side of the budget
e.make it possible for government to spend money on activities that markets can't provide
Click here for the SOLUTION
Multiple Choice
Taxes collected on the basis of the benefits-received principle
a.provide the states with their main sources of revenue
b.tend to redistribute income from rich to poor
c.collect the same total amount from each individual
d.connect the revenue side of the budget with the spending side of the budget
e.make it possible for government to spend money on activities that markets can't provide
Click here for the SOLUTION
Which of the following taxes is based on the benefits-received principle?
ECONOMICS
Multiple Choice
Which of the following taxes is based on the benefits-received principle?
a.corporate income taxes
b.personal income taxes
c.property taxes
d.gasoline excise taxes
e.user fees that collect the same amount from each person
Click here for the SOLUTION
Multiple Choice
Which of the following taxes is based on the benefits-received principle?
a.corporate income taxes
b.personal income taxes
c.property taxes
d.gasoline excise taxes
e.user fees that collect the same amount from each person
Click here for the SOLUTION
Which of the following taxes is based on the ability-to-pay principle?
ECONOMICS
Multiple Choice
Which of the following taxes is based on the ability-to-pay principle?
a.tolls on a bridge
b.income taxes
c.gasoline excise taxes
d.property taxes
e.user fees that collect the same amount from each person
Click here for the SOLUTION
Multiple Choice
Which of the following taxes is based on the ability-to-pay principle?
a.tolls on a bridge
b.income taxes
c.gasoline excise taxes
d.property taxes
e.user fees that collect the same amount from each person
Click here for the SOLUTION
Which of the following is not based on the benefits-received principle of taxation?
ECONOMICS
Multiple Choice
Which of the following is not based on the benefits-received principle of taxation?
a.charging a fee for use of public golf courses
b.differences between residential and out-of-state college tuition
c.the excise tax on gasoline
d.toll booths on a highway
e.charging a fee per bag to haul away garbage
Click here for the SOLUTION
Multiple Choice
Which of the following is not based on the benefits-received principle of taxation?
a.charging a fee for use of public golf courses
b.differences between residential and out-of-state college tuition
c.the excise tax on gasoline
d.toll booths on a highway
e.charging a fee per bag to haul away garbage
Click here for the SOLUTION
Which of the following taxes is most clearly based on the benefits-received principle of taxation?
ECONOMICS
Multiple Choice
Which of the following taxes is most clearly based on the benefits-received principle of taxation?
a.corporate income tax
b.gsoline tax
c.personal income tax
d.payroll tax
e.value added tax
Click here for the SOLUTION
Multiple Choice
Which of the following taxes is most clearly based on the benefits-received principle of taxation?
a.corporate income tax
b.gsoline tax
c.personal income tax
d.payroll tax
e.value added tax
Click here for the SOLUTION
Which of the following is a justification for taxes?
ECONOMICS
Multiple Choice
Which of the following is a justification for taxes?
a.the ability-to-pay principle
b.the progressive tax principle
c.the proportional tax principle
d.the regressive tax principle
e.the desire of the government to spend more funds
Click here for the SOLUTION
Multiple Choice
Which of the following is a justification for taxes?
a.the ability-to-pay principle
b.the progressive tax principle
c.the proportional tax principle
d.the regressive tax principle
e.the desire of the government to spend more funds
Click here for the SOLUTION
Gasoline taxes illustrate the benefits-received principle of taxation
ECONOMICS
Multiple Choice
Gasoline taxes illustrate the benefits-received principle of taxation
a.True
b.False
Click here for the SOLUTION
Multiple Choice
Gasoline taxes illustrate the benefits-received principle of taxation
a.True
b.False
Click here for the SOLUTION
Federal individual income taxes illustrate the ability-to-pay principle of taxation
ECONOMICS
Multiple Choice
Federal individual income taxes illustrate the ability-to-pay principle of taxation
a.True
b.False
Click here for the SOLUTION
Multiple Choice
Federal individual income taxes illustrate the ability-to-pay principle of taxation
a.True
b.False
Click here for the SOLUTION
Under a regressive income tax system, individuals with higher incomes pay higher marginal tax rates
ECONOMICS
Multiple Choice
Under a regressive income tax system, individuals with higher incomes pay higher marginal tax rates
a.True
b.False
Click here for the SOLUTION
Multiple Choice
Under a regressive income tax system, individuals with higher incomes pay higher marginal tax rates
a.True
b.False
Click here for the SOLUTION
The personal income tax is based on the benefits-received principle of taxation
ECONOMICS
Multiple Choice
The personal income tax is based on the benefits-received principle of taxation
a.True
b.False
Click here for the SOLUTION
Multiple Choice
The personal income tax is based on the benefits-received principle of taxation
a.True
b.False
Click here for the SOLUTION
The excise tax on gasoline is based on the ability-to-pay principle of taxation
ECONOMICS
Multiple Choice
The excise tax on gasoline is based on the ability-to-pay principle of taxation
a.True
b.False
Click here for the SOLUTION
Multiple Choice
The excise tax on gasoline is based on the ability-to-pay principle of taxation
a.True
b.False
Click here for the SOLUTION
The largest source of federal government revenue is
ECONOMICS
Multiple Choice
The largest source of federal government revenue is
a.corporate income taxes
b.individual income taxes
c.payroll taxes
d.sales and excise taxes
e.tariffs on imported goods and other customs fees and duties
Click here for the SOLUTION
Multiple Choice
The largest source of federal government revenue is
a.corporate income taxes
b.individual income taxes
c.payroll taxes
d.sales and excise taxes
e.tariffs on imported goods and other customs fees and duties
Click here for the SOLUTION
The second largest source of tax revenue for the federal government is
ECONOMICS
Multiple Choice
The second largest source of tax revenue for the federal government is
a.payroll taxes
b.the personal income tax
c.the corporate income tax
d.excise taxes
e.the sales tax
Click here for the SOLUTION
Multiple Choice
The second largest source of tax revenue for the federal government is
a.payroll taxes
b.the personal income tax
c.the corporate income tax
d.excise taxes
e.the sales tax
Click here for the SOLUTION
Which of the following accounts for the largest source of revenue for the federal government?
ECONOMICS
Multiple Choice
Which of the following accounts for the largest source of revenue for the federal government?
a.sales tax
b.federal property tax
c.personal income tax
d.corporate income tax
e.borrowing
Click here for the SOLUTION
Multiple Choice
Which of the following accounts for the largest source of revenue for the federal government?
a.sales tax
b.federal property tax
c.personal income tax
d.corporate income tax
e.borrowing
Click here for the SOLUTION
The main source of revenue for the U.S. federal government is
ECONOMICS
Multiple Choice
The main source of revenue for the U.S. federal government is
a.personal income taxes
b.corporate income taxes
c.sales taxes
d.borrowing on financial markets
e.revenue from the sale of government goods and services
Click here for the SOLUTION
Multiple Choice
The main source of revenue for the U.S. federal government is
a.personal income taxes
b.corporate income taxes
c.sales taxes
d.borrowing on financial markets
e.revenue from the sale of government goods and services
Click here for the SOLUTION
The primary source of revenue for local governments is the property tax
ECONOMICS
Multiple Choice
The primary source of revenue for local governments is the property tax
a.True
b.False
Click here for the SOLUTION
Multiple Choice
The primary source of revenue for local governments is the property tax
a.True
b.False
Click here for the SOLUTION
Revenue for the state governments in the United States comes primarily from income taxes
ECONOMICS
Multiple Choice
Revenue for the state governments in the United States comes primarily from income taxes
a.True
b.False
Click here for the SOLUTION
Multiple Choice
Revenue for the state governments in the United States comes primarily from income taxes
a.True
b.False
Click here for the SOLUTION
What part of federal government spending has grown the most slowly in recent decades?
ECONOMICS
Multiple Choice
What part of federal government spending has grown the most slowly in recent decades?
a.national defense
b.welfare
c.interest on the national debt
d.social security and medicare
e.all other forms of federal government spending
Click here for the SOLUTION
Multiple Choice
What part of federal government spending has grown the most slowly in recent decades?
a.national defense
b.welfare
c.interest on the national debt
d.social security and medicare
e.all other forms of federal government spending
Click here for the SOLUTION
What part of federal government spending has grown the most rapidly in recent years?
ECONOMICS
Multiple Choice
What part of federal government spending has grown the most rapidly in recent years?
a.national defense
b.welfare
c.interest on the national debt
d.social security and Medicare
e.all other forms of federal government spending
Click here for the SOLUTION
Multiple Choice
What part of federal government spending has grown the most rapidly in recent years?
a.national defense
b.welfare
c.interest on the national debt
d.social security and Medicare
e.all other forms of federal government spending
Click here for the SOLUTION
In the United States, all levels of government together spend about
ECONOMICS
Multiple Choice
In the United States, all levels of government together spend about
a.one out of every three dollars paid for finished goods and services
b.half of the dollars paid for defense spending
c.the same amount as private citizens and corporations
d.one out of every three dollars paid for education
e.80 percent of their budgets on transfer payments
Click here for the SOLUTION
Multiple Choice
In the United States, all levels of government together spend about
a.one out of every three dollars paid for finished goods and services
b.half of the dollars paid for defense spending
c.the same amount as private citizens and corporations
d.one out of every three dollars paid for education
e.80 percent of their budgets on transfer payments
Click here for the SOLUTION
Since 1930, U.S. government spending as a percent of GDP has
ECONOMICS
Multiple Choice
Since 1930, U.S. government spending as a percent of GDP has
a.increased
b.decreased
c.stayed the same
d.showed no particular trend
e.increased by the same percent each year
Click here for the SOLUTION
Multiple Choice
Since 1930, U.S. government spending as a percent of GDP has
a.increased
b.decreased
c.stayed the same
d.showed no particular trend
e.increased by the same percent each year
Click here for the SOLUTION
Gross Domestic Product is the value of all
ECONOMICS
Multiple Choice
Gross Domestic Product is the value of all
a.goods and services produced during a particular year
b.goods and services sold during a particular year
c.final goods and services sold during a particular year
d.final goods and services produced during a particular year
e.final goods and services produced and sold during a particular year
Click here for the SOLUTION
Multiple Choice
Gross Domestic Product is the value of all
a.goods and services produced during a particular year
b.goods and services sold during a particular year
c.final goods and services sold during a particular year
d.final goods and services produced during a particular year
e.final goods and services produced and sold during a particular year
Click here for the SOLUTION
Gross Domestic Product is the market value of
ECONOMICS
Multiple Choice
Gross Domestic Product is the market value of
a.all exchanges made during the course of a year
b.all final goods produced during the course of a year
c.all monetary transactions during the course of a year
d.all the goods produced during the course of a year over and above what is required to maintain the population and the stock of capital
e.all final goods sold during the course of a year
Click here for the SOLUTION
Multiple Choice
Gross Domestic Product is the market value of
a.all exchanges made during the course of a year
b.all final goods produced during the course of a year
c.all monetary transactions during the course of a year
d.all the goods produced during the course of a year over and above what is required to maintain the population and the stock of capital
e.all final goods sold during the course of a year
Click here for the SOLUTION
In recent years, redistribution has been the fastest growing category of federal government outlays
ECONOMICS
Multiple Choice
In recent years, redistribution has been the fastest growing category of federal government outlays
a.True
b.False
Click here for the SOLUTION
Multiple Choice
In recent years, redistribution has been the fastest growing category of federal government outlays
a.True
b.False
Click here for the SOLUTION
When the government sells something it produces,
ECONOMICS
Multiple Choice
When the government sells something it produces,
a.revenue received must be greater than cost to justify government production
b.revenue received must equal cost because government is a nonprofit organization
c.the price does not always reflect the cost of producing the good
d.the price charged is an accurate measure of the benefits generated
e.it prices the good the same way a natural monopolist would
Click here for the SOLUTION
Multiple Choice
When the government sells something it produces,
a.revenue received must be greater than cost to justify government production
b.revenue received must equal cost because government is a nonprofit organization
c.the price does not always reflect the cost of producing the good
d.the price charged is an accurate measure of the benefits generated
e.it prices the good the same way a natural monopolist would
Click here for the SOLUTION
Wednesday, July 20, 2011
Market activity differs from government activity because
ECONOMICS
Multiple Choice
Market activity differs from government activity because
a.markets generally force prices to below-cost levels
b.governments never charge for the services they provide
c.markets do not use voluntary exchange mechanisms
d.markets provide a direct link between benefits and costs
e.governments have strong incentives to keep costs under strict control
Click here for the SOLUTION
Multiple Choice
Market activity differs from government activity because
a.markets generally force prices to below-cost levels
b.governments never charge for the services they provide
c.markets do not use voluntary exchange mechanisms
d.markets provide a direct link between benefits and costs
e.governments have strong incentives to keep costs under strict control
Click here for the SOLUTION
Government policies are coercive, whereas markets are not
ECONOMICS
Multiple Choice
Government policies are coercive, whereas markets are not. This implies that
a.government activity will always be less efficient than market activity
b.households cannot maximize utility if they consume any government goods and services
c.market transactions result in an equal number of gainers and losers
d.self-interest and public interest are always in conflict
e.government can provide some goods and services when private markets fail to do so
Click here for the SOLUTION
Multiple Choice
Government policies are coercive, whereas markets are not. This implies that
a.government activity will always be less efficient than market activity
b.households cannot maximize utility if they consume any government goods and services
c.market transactions result in an equal number of gainers and losers
d.self-interest and public interest are always in conflict
e.government can provide some goods and services when private markets fail to do so
Click here for the SOLUTION
A common assumption that economists make about the behavior of elected officials is that they try to
ECONOMICS
Multiple Choice
A common assumption that economists make about the behavior of elected officials is that they try to
a.maximize the size of their government salaries
b.maximize the size of their control over the budget process
c.maximize the number of votes they receive in the next election
d.minimize the government's expenditures in order to balance the budget
e.conform to the wishes of special interest groups so that the government behaves as a single, consistent decision maker
Click here for the SOLUTION
Multiple Choice
A common assumption that economists make about the behavior of elected officials is that they try to
a.maximize the size of their government salaries
b.maximize the size of their control over the budget process
c.maximize the number of votes they receive in the next election
d.minimize the government's expenditures in order to balance the budget
e.conform to the wishes of special interest groups so that the government behaves as a single, consistent decision maker
Click here for the SOLUTION
Of the three levels of government in the United States,
ECONOMICS
Multiple Choice
Of the three levels of government in the United States,
a.only the federal government provides public goods
b.only the federal government has the power to tax
c.local governments are primarily responsible for primary and secondary education
d.the federal government is primarily responsible for higher education
e.state governments are primarily responsible for economic stability
Click here for the SOLUTION
Multiple Choice
Of the three levels of government in the United States,
a.only the federal government provides public goods
b.only the federal government has the power to tax
c.local governments are primarily responsible for primary and secondary education
d.the federal government is primarily responsible for higher education
e.state governments are primarily responsible for economic stability
Click here for the SOLUTION
Which of the following is true about government activity in the United States?
ECONOMICS
Multiple Choice
Which of the following is true about government activity in the United States?
a.Macroeconomic policy is handled mainly at the state level.
b.Higher education is handled mainly at the national level.
c.Primary and secondary education is handled mainly at the local level.
d.Primary and secondary education is handled mainly at the national level.
e.Police and fire protection are handled mainly at the state level.
Click here for the SOLUTION
Multiple Choice
Which of the following is true about government activity in the United States?
a.Macroeconomic policy is handled mainly at the state level.
b.Higher education is handled mainly at the national level.
c.Primary and secondary education is handled mainly at the local level.
d.Primary and secondary education is handled mainly at the national level.
e.Police and fire protection are handled mainly at the state level.
Click here for the SOLUTION
Goods and services produced by the government are sold at prices that are set to recover production costs
ECONOMICS
Multiple Choice
Goods and services produced by the government are sold at prices that are set to recover production costs
a.True
b.False
Click here for the SOLUTION
Multiple Choice
Goods and services produced by the government are sold at prices that are set to recover production costs
a.True
b.False
Click here for the SOLUTION
Most economists assume that the goal of elected officials is to promote the public interest
ECONOMICS
Multiple Choice
Most economists assume that the goal of elected officials is to promote the public interest
a.True
b.False
Click here for the SOLUTION
Multiple Choice
Most economists assume that the goal of elected officials is to promote the public interest
a.True
b.False
Click here for the SOLUTION
When the social cost of production is greater than the private cost, we have a
ECONOMICS
Multiple Choice
When the social cost of production is greater than the private cost, we have a
a.positive externality
b.negative externality
c.public good
d.private good
e.positive spillover
Click here for the SOLUTION
Multiple Choice
When the social cost of production is greater than the private cost, we have a
a.positive externality
b.negative externality
c.public good
d.private good
e.positive spillover
Click here for the SOLUTION
Which of the following is not a goal of government programs?
ECONOMICS
Multiple Choice
Which of the following is not a goal of government programs?
a.to enforce private property rights
b.to prohibit natural monopolies
c.to reduce pollution
d.to transfer money from higher-income households to the poorest households
e.to maintain price stability
Click here for the SOLUTION
Multiple Choice
Which of the following is not a goal of government programs?
a.to enforce private property rights
b.to prohibit natural monopolies
c.to reduce pollution
d.to transfer money from higher-income households to the poorest households
e.to maintain price stability
Click here for the SOLUTION
Which of the following is not a function of government?
ECONOMICS
Multiple Choice
Which of the following is not a function of government?
a.promotion of competition
b.stabilization to achieve the macroeconomic goals
c.redistribution of income through taxation and transfer payments
d.production of public goods
e.providing the economy's private goods
Click here for the SOLUTION
Multiple Choice
Which of the following is not a function of government?
a.promotion of competition
b.stabilization to achieve the macroeconomic goals
c.redistribution of income through taxation and transfer payments
d.production of public goods
e.providing the economy's private goods
Click here for the SOLUTION
The difference between fiscal policy and monetary policy is that
ECONOMICS
Multiple Choice
The difference between fiscal policy and monetary policy is that
a.fiscal policy is macroeconomic policy and monetary policy is microeconomic policy
b.monetary policy is macroeconomic policy and fiscal policy is microeconomic policy
c.fiscal policy involves regulation of natural monopolies and monetary policy involves the provision of public goods
d.monetary policy involves regulation of the money supply and fiscal policy involves government spending and taxing
e.fiscal policy involves the promotion of competition and monetary policy involves collecting money to pay for taxes
Click here for the SOLUTION
Multiple Choice
The difference between fiscal policy and monetary policy is that
a.fiscal policy is macroeconomic policy and monetary policy is microeconomic policy
b.monetary policy is macroeconomic policy and fiscal policy is microeconomic policy
c.fiscal policy involves regulation of natural monopolies and monetary policy involves the provision of public goods
d.monetary policy involves regulation of the money supply and fiscal policy involves government spending and taxing
e.fiscal policy involves the promotion of competition and monetary policy involves collecting money to pay for taxes
Click here for the SOLUTION
The term "fiscal policy" refers to
ECONOMICS
Multiple Choice
The term "fiscal policy" refers to
a.the amount of physical output produced by firms
b.the means by which government policy makes firms more productive
c.the avenue by which government influences credit markets
d.spending and taxing by governments
e.a tool of government that works in the opposite direction of monetary policy
Click here for the SOLUTION
Multiple Choice
The term "fiscal policy" refers to
a.the amount of physical output produced by firms
b.the means by which government policy makes firms more productive
c.the avenue by which government influences credit markets
d.spending and taxing by governments
e.a tool of government that works in the opposite direction of monetary policy
Click here for the SOLUTION
Which of the following is not a government transfer program?
ECONOMICS
Multiple Choice
Which of the following is not a government transfer program?
a.unemployment compensation
b.Social Security
c.food stamps
d.Medicare
e.movement of soldiers to a different military base
Click here for the SOLUTION
Multiple Choice
Which of the following is not a government transfer program?
a.unemployment compensation
b.Social Security
c.food stamps
d.Medicare
e.movement of soldiers to a different military base
Click here for the SOLUTION
Determining the most socially desirable level of income equality or inequality
ECONOMICS
Multiple Choice
Determining the most socially desirable level of income equality or inequality
a.is done through markets, rather than by the government
b.is done directly by firms
c.involves normative economics
d.involves evaluation of public goods
e.involves evaluation of all externalities, both positive and negative
Click here for the SOLUTION
Multiple Choice
Determining the most socially desirable level of income equality or inequality
a.is done through markets, rather than by the government
b.is done directly by firms
c.involves normative economics
d.involves evaluation of public goods
e.involves evaluation of all externalities, both positive and negative
Click here for the SOLUTION
An example of a positive externality is
ECONOMICS
Multiple Choice
An example of a positive externality is
a.pollution because it affects people not directly involved with producing it
b.a homeowner's maintenance of a beautiful lawn because this creates a benefit for neighbors
c.creating a monopoly
d.driving a car that emits pollution
e.cigarette smoking because this imposes an indirect cost on people around the smoker
Click here for the SOLUTION
Multiple Choice
An example of a positive externality is
a.pollution because it affects people not directly involved with producing it
b.a homeowner's maintenance of a beautiful lawn because this creates a benefit for neighbors
c.creating a monopoly
d.driving a car that emits pollution
e.cigarette smoking because this imposes an indirect cost on people around the smoker
Click here for the SOLUTION
Which of the following would not be considered a role of the government?
ECONOMICS
Multiple Choice
Which of the following would not be considered a role of the government?
a.promoting competition
b.providing public goods
c.providing externalities
d.regulating natural monopolies
e.safeguarding private property and enforcing contracts
Click here for the SOLUTION
Multiple Choice
Which of the following would not be considered a role of the government?
a.promoting competition
b.providing public goods
c.providing externalities
d.regulating natural monopolies
e.safeguarding private property and enforcing contracts
Click here for the SOLUTION
Externalities are defined as
ECONOMICS
Multiple Choice
Externalities are defined as
a.any transaction external to the firm
b.costs or benefits that fall on third parties
c.policies that firms undertake to sell products outside the country
d.managers' dealings with stockholders outside the firm
e.costs of maintaining plant and equipment to avoid the scrutiny of external auditors
Click here for the SOLUTION
Multiple Choice
Externalities are defined as
a.any transaction external to the firm
b.costs or benefits that fall on third parties
c.policies that firms undertake to sell products outside the country
d.managers' dealings with stockholders outside the firm
e.costs of maintaining plant and equipment to avoid the scrutiny of external auditors
Click here for the SOLUTION
What is the rationale for government provision of education?
ECONOMICS
Multiple Choice
What is the rationale for government provision of education?
a.Not all incomes are equal, but everyone has the right to education regardless of wealth.
b.Potential students consider only their personal benefits gained from education, but the rest of society benefits, too.
c.No education would be provided in the absence of government provision because everyone would consume it without paying.
d.The cost of providing education for the entire public is too large.
e.The government can provide education at a much lower cost than the private sector.
Click here for the SOLUTION
Multiple Choice
What is the rationale for government provision of education?
a.Not all incomes are equal, but everyone has the right to education regardless of wealth.
b.Potential students consider only their personal benefits gained from education, but the rest of society benefits, too.
c.No education would be provided in the absence of government provision because everyone would consume it without paying.
d.The cost of providing education for the entire public is too large.
e.The government can provide education at a much lower cost than the private sector.
Click here for the SOLUTION
Some people have argued that government should provide only those goods that we would truly define as public goods
ECONOMICS
Multiple Choice
Some people have argued that government should provide only those goods that we would truly define as public goods. If so, which of the following should government produce?
a.National Defense
b.day-care centers for children of working mothers
c.mail delivery
d.unemployment benefits
e.subsidies for agricultural products
Click here for the SOLUTION
Multiple Choice
Some people have argued that government should provide only those goods that we would truly define as public goods. If so, which of the following should government produce?
a.National Defense
b.day-care centers for children of working mothers
c.mail delivery
d.unemployment benefits
e.subsidies for agricultural products
Click here for the SOLUTION
Which of the following is true of public goods?
ECONOMICS
Multiple Choice
Which of the following is true of public goods?
a.The market mechanism helps to signal the quantity that is demanded by the public.
b.Payment for consumption is efficiently provided by market prices.
c.Consumption by one person does not preclude consumption of the same good by another person.
d.The public sector is guided to produce the correct quantity by market prices.
e.Voluntary contributions will be sufficient to finance the production of public goods.
Click here for the SOLUTION
Multiple Choice
Which of the following is true of public goods?
a.The market mechanism helps to signal the quantity that is demanded by the public.
b.Payment for consumption is efficiently provided by market prices.
c.Consumption by one person does not preclude consumption of the same good by another person.
d.The public sector is guided to produce the correct quantity by market prices.
e.Voluntary contributions will be sufficient to finance the production of public goods.
Click here for the SOLUTION
The funds to pay for police protection are usually raised through taxation because
ECONOMICS
Multiple Choice
The funds to pay for police protection are usually raised through taxation because
a.police protection would be hard to provide exclusively to those who voluntarily pay for it
b.people would not voluntarily pay salaries to officials who might arrest them
c.police protection is a basic necessity
d.goods financed through taxation can be guaranteed to all who pay for it
e.the government believes that those who receive the benefits from the service should pay for it
Click here for the SOLUTION
Multiple Choice
The funds to pay for police protection are usually raised through taxation because
a.police protection would be hard to provide exclusively to those who voluntarily pay for it
b.people would not voluntarily pay salaries to officials who might arrest them
c.police protection is a basic necessity
d.goods financed through taxation can be guaranteed to all who pay for it
e.the government believes that those who receive the benefits from the service should pay for it
Click here for the SOLUTION
Which of the following is a defining characteristic of a public good?
ECONOMICS
Multiple Choice
Which of the following is a defining characteristic of a public good?
a.It is produced and distributed by the government.
b.
The decision to produce it is made by the public through the voting process.
c.It is produced and distributed by private firms according to government regulations.
d.It is freely available to everyone once it is produced.
e.It is purchased by one government agency from another government agency.
Click here for the SOLUTION
Multiple Choice
Which of the following is a defining characteristic of a public good?
a.It is produced and distributed by the government.
b.
The decision to produce it is made by the public through the voting process.
c.It is produced and distributed by private firms according to government regulations.
d.It is freely available to everyone once it is produced.
e.It is purchased by one government agency from another government agency.
Click here for the SOLUTION
Natural monopolies occur when
ECONOMICS
Multiple Choice
Natural monopolies occur when
a.government antitrust laws are too weak or not enforced
b.negative externalities are present
c.firms collude to set prices and divide the market among themselves
d.one firm can service the market more cheaply than two or more firms can
e.a public good is produced by a private firm
Click here for the SOLUTION
Multiple Choice
Natural monopolies occur when
a.government antitrust laws are too weak or not enforced
b.negative externalities are present
c.firms collude to set prices and divide the market among themselves
d.one firm can service the market more cheaply than two or more firms can
e.a public good is produced by a private firm
Click here for the SOLUTION
Government antitrust laws were designed to
ECONOMICS
Multiple Choice
Government antitrust laws were designed to
a.encourage the production of public goods
b.prevent natural monopolies
c.prevent collusion among firms
d.regulate natural monopolies
e.correct the outcomes of positive and negative externalities in private markets
Click here for the SOLUTION
Multiple Choice
Government antitrust laws were designed to
a.encourage the production of public goods
b.prevent natural monopolies
c.prevent collusion among firms
d.regulate natural monopolies
e.correct the outcomes of positive and negative externalities in private markets
Click here for the SOLUTION
Which of the following is a reason why government is a participant in a market-oriented economy?
ECONOMICS
Multiple Choice
Which of the following is a reason why government is a participant in a market-oriented economy?
a.to enforce contracts and protect private property
b.to promote collusion
c.to promote the growth of natural monopolies
d.to provide more inequality in the distribution of income
e.all of the above
Click here for the SOLUTION
Multiple Choice
Which of the following is a reason why government is a participant in a market-oriented economy?
a.to enforce contracts and protect private property
b.to promote collusion
c.to promote the growth of natural monopolies
d.to provide more inequality in the distribution of income
e.all of the above
Click here for the SOLUTION
Contracts are enforced by
ECONOMICS
Multiple Choice
Contracts are enforced by
a.the firms that make the contracts through buy-out clauses
b.law firms that specialize in contract enforcement
c.corporations specializing in contract writing and enforcement
d.the government through the judicial system
e.both households and firms through customer relations departments
Click here for the SOLUTION
Multiple Choice
Contracts are enforced by
a.the firms that make the contracts through buy-out clauses
b.law firms that specialize in contract enforcement
c.corporations specializing in contract writing and enforcement
d.the government through the judicial system
e.both households and firms through customer relations departments
Click here for the SOLUTION
It is difficult to exclude individuals from the use of public goods and services
ECONOMICS
Multiple Choice
It is difficult to exclude individuals from the use of public goods and services
a.True
b.False
Click here for the SOLUTION
Multiple Choice
It is difficult to exclude individuals from the use of public goods and services
a.True
b.False
Click here for the SOLUTION
When externalities are present, market prices do not reflect all the social costs or benefits of the activity
ECONOMICS
Multiple Choice
When externalities are present, market prices do not reflect all the social costs or benefits of the activity
a.True
b.False
Click here for the SOLUTION
Multiple Choice
When externalities are present, market prices do not reflect all the social costs or benefits of the activity
a.True
b.False
Click here for the SOLUTION
A public good is available to all regardless of who pays for it and who does not
ECONOMICS
Multiple Choice
A public good is available to all regardless of who pays for it and who does not
a.True
b.False
Click here for the SOLUTION
Multiple Choice
A public good is available to all regardless of who pays for it and who does not
a.True
b.False
Click here for the SOLUTION
To serve the public interest, government sometimes promotes competition by breaking up natural monopolies
ECONOMICS
Multiple Choice
To serve the public interest, government sometimes promotes competition by breaking up natural monopolies
a.True
b.False
Click here for the SOLUTION
Multiple Choice
To serve the public interest, government sometimes promotes competition by breaking up natural monopolies
a.True
b.False
Click here for the SOLUTION
Two important roles of government in the economy are to safeguard private property and enforce contracts
ECONOMICS
Multiple Choice
Two important roles of government in the economy are to safeguard private property and enforce contracts
a.True
b.False
Click here for the SOLUTION
Multiple Choice
Two important roles of government in the economy are to safeguard private property and enforce contracts
a.True
b.False
Click here for the SOLUTION
You are more likely to hire your teenage child to cut your lawn than a landscaping firm
ECONOMICS
Multiple Choice
You are more likely to hire your teenage child to cut your lawn than a landscaping firm
a.since the teenager is paid each time when she finishes and the landscaping firm bills your credit card each month
b.if the teenager has a lower opportunity cost of cutting the lawn than the landscaping firm does
c.because the teenager is less likely to have the specialized tools necessary to complete the job quickly
d.due to the bounded rationality of the diversified landscaping firm
e.when it does not take a substantial amount of time and effort to find a reputable landscaping firm to do the job
Click here for the SOLUTION
Multiple Choice
You are more likely to hire your teenage child to cut your lawn than a landscaping firm
a.since the teenager is paid each time when she finishes and the landscaping firm bills your credit card each month
b.if the teenager has a lower opportunity cost of cutting the lawn than the landscaping firm does
c.because the teenager is less likely to have the specialized tools necessary to complete the job quickly
d.due to the bounded rationality of the diversified landscaping firm
e.when it does not take a substantial amount of time and effort to find a reputable landscaping firm to do the job
Click here for the SOLUTION
You are more likely to do-it-yourself than hire a plumber to repair a leaky drain pipe
ECONOMICS
Multiple Choice
You are more likely to do-it-yourself than hire a plumber to repair a leaky drain pipe
a.as the tax rate on your earned income dramatically decreases
b.if the opportunity cost of your time decreases
c.the less knowledge and experience in plumbing repair work that you possess
d.if you already own the specialized tools required to complete the repair work
e.as the transaction cost of the do-it-yourself repair work increases
Click here for the SOLUTION
Multiple Choice
You are more likely to do-it-yourself than hire a plumber to repair a leaky drain pipe
a.as the tax rate on your earned income dramatically decreases
b.if the opportunity cost of your time decreases
c.the less knowledge and experience in plumbing repair work that you possess
d.if you already own the specialized tools required to complete the repair work
e.as the transaction cost of the do-it-yourself repair work increases
Click here for the SOLUTION
Friday, July 15, 2011
You are more likely to hire a plumber to repair a leaky drain pipe
ECONOMICS
Multiple Choice
You are more likely to hire a plumber to repair a leaky drain pipe
a.as the tax rate on your earned income rises
b.if you already own the specialized tools required to complete the plumbing repair work
c.following an increase in the opportunity cost of your time
d.the more knowledge and experience in plumbing repair work that you possess
e.as the transaction cost of entering into a plumbing contract increases due to government regulations
Click here for the SOLUTION
Multiple Choice
You are more likely to hire a plumber to repair a leaky drain pipe
a.as the tax rate on your earned income rises
b.if you already own the specialized tools required to complete the plumbing repair work
c.following an increase in the opportunity cost of your time
d.the more knowledge and experience in plumbing repair work that you possess
e.as the transaction cost of entering into a plumbing contract increases due to government regulations
Click here for the SOLUTION
5. Household production is more likely to occur when
ECONOMICS
Multiple Choice
Household production is more likely to occur when
a.it requires many specialized resources
b.technology makes it easier than market production
c.tax avoidance is undesirable
d.less control over the final product is desirable
e.the opportunity cost of household production is high
Click here for the SOLUTION
Multiple Choice
Household production is more likely to occur when
a.it requires many specialized resources
b.technology makes it easier than market production
c.tax avoidance is undesirable
d.less control over the final product is desirable
e.the opportunity cost of household production is high
Click here for the SOLUTION
Which of the following is not a reason why some production continues in households?
ECONOMICS
Multiple Choice
Which of the following is not a reason why some production continues in households?
a.Some household production requires many specialized resources
b.The opportunity cost of household production has decreased over time
c.Household production avoids taxes
d.There have been important technological advances in household production
e.Some households prefer the ability to control production
Click here for the SOLUTION
Multiple Choice
Which of the following is not a reason why some production continues in households?
a.Some household production requires many specialized resources
b.The opportunity cost of household production has decreased over time
c.Household production avoids taxes
d.There have been important technological advances in household production
e.Some households prefer the ability to control production
Click here for the SOLUTION
4. Household production is more likely to occur when
ECONOMICS
Multiple Choice
Household production is more likely to occur when
a.it requires many specialized resources
b.technology makes it more costly than market production
c.tax avoidance is desirable
d.less control over the final product is desirable
e.the opportunity cost of household production is high
Click here for the SOLUTION
Multiple Choice
Household production is more likely to occur when
a.it requires many specialized resources
b.technology makes it more costly than market production
c.tax avoidance is desirable
d.less control over the final product is desirable
e.the opportunity cost of household production is high
Click here for the SOLUTION
3. Household production is more likely to occur when
ECONOMICS
Multiple Choice
Household production is more likely to occur when
a.it requires few specialized resources
b.technology makes it more costly than market production
c.tax avoidance is undesirable
d.less control over the final product is desirable
e.the opportunity cost of household production is high
Click here for the SOLUTION
Multiple Choice
Household production is more likely to occur when
a.it requires few specialized resources
b.technology makes it more costly than market production
c.tax avoidance is undesirable
d.less control over the final product is desirable
e.the opportunity cost of household production is high
Click here for the SOLUTION
Despite specialization and comparative advantage, household production still exists because for some households
ECONOMICS
Multiple Choice
Despite specialization and comparative advantage, household production still exists because for some households
a.the opportunity cost of production at home is greater than the cost of purchasing the good in the market
b.production at home is less costly than purchasing the good in the market
c.the value of home production exceeds the sunk cost of home production
d.the value of home production is ignored
e.food and clothing expenditures represent a small portion of their total budget
Click here for the SOLUTION
Multiple Choice
Despite specialization and comparative advantage, household production still exists because for some households
a.the opportunity cost of production at home is greater than the cost of purchasing the good in the market
b.production at home is less costly than purchasing the good in the market
c.the value of home production exceeds the sunk cost of home production
d.the value of home production is ignored
e.food and clothing expenditures represent a small portion of their total budget
Click here for the SOLUTION
2. Household production is more likely to occur when
ECONOMICS
Multiple Choice
Household production is more likely to occur when
a.it requires many specialized resources
b.technology makes it more costly than market production
c.
tax avoidance is undesirable
d.less control over the final product is desirable
e.the opportunity cost of household work is relatively small
Click here for the SOLUTION
Multiple Choice
Household production is more likely to occur when
a.it requires many specialized resources
b.technology makes it more costly than market production
c.
tax avoidance is undesirable
d.less control over the final product is desirable
e.the opportunity cost of household work is relatively small
Click here for the SOLUTION
Household production is more likely to occur when
ECONOMICS
Multiple Choice
Household production is more likely to occur when
a.it requires many specialized resources
b.technology makes it more costly than market production
c.tax avoidance is undesirable
d.more control over the final product is desirable
e.all of the above
Click here for the SOLUTION
Multiple Choice
Household production is more likely to occur when
a.it requires many specialized resources
b.technology makes it more costly than market production
c.tax avoidance is undesirable
d.more control over the final product is desirable
e.all of the above
Click here for the SOLUTION
Household production increases when there is a stronger desire to avoid taxation
ECONOMICS
Multiple Choice
Household production increases when there is a stronger desire to avoid taxation
a.True
b.False
Click here for the SOLUTION
Multiple Choice
Household production increases when there is a stronger desire to avoid taxation
a.True
b.False
Click here for the SOLUTION
Household production still exists because it often requires fewer specialized resources than market production does
ECONOMICS
Multiple Choice
Household production still exists because it often requires fewer specialized resources than market production does
a.True
b.False
Click here for the SOLUTION
Multiple Choice
Household production still exists because it often requires fewer specialized resources than market production does
a.True
b.False
Click here for the SOLUTION
Which of the following is not a not-for-profit institution?
ECONOMICS
Multiple Choice
Which of the following is not a not-for-profit institution?
a.Columbia Broadcasting System (CBS)
b.American Red Cross
c.Salvation Army
d.a public library
e.a typical college or university
Click here for the SOLUTION
Multiple Choice
Which of the following is not a not-for-profit institution?
a.Columbia Broadcasting System (CBS)
b.American Red Cross
c.Salvation Army
d.a public library
e.a typical college or university
Click here for the SOLUTION
The Salvation Army is an example of a(n)
ECONOMICS
Multiple Choice
The Salvation Army is an example of a(n)
a.military organization
b.not-for-profit organization
c.partnership
d.S-corporation
e.U.S. government agency
Click here for the SOLUTION
Multiple Choice
The Salvation Army is an example of a(n)
a.military organization
b.not-for-profit organization
c.partnership
d.S-corporation
e.U.S. government agency
Click here for the SOLUTION
Nonprofit, or not-for-profit, firms
ECONOMICS
Multiple Choice
Nonprofit, or not-for-profit, firms
a.maximize revenue instead of profit
b.minimize cost rather than maximize profit
c.often pursue goals other than profit maximization
d.pursue profit as their main goal despite their name
e.have no incentive to produce efficiently
Click here for the SOLUTION
Multiple Choice
Nonprofit, or not-for-profit, firms
a.maximize revenue instead of profit
b.minimize cost rather than maximize profit
c.often pursue goals other than profit maximization
d.pursue profit as their main goal despite their name
e.have no incentive to produce efficiently
Click here for the SOLUTION
Which of the following have their profits taxed twice?
ECONOMICS
Multiple Choice
Which of the following have their profits taxed twice?
a.sole proprietorships
b.partnerships
c.corporations
d.nonprofit institutions
e.S-corporations
Click here for the SOLUTION
Multiple Choice
Which of the following have their profits taxed twice?
a.sole proprietorships
b.partnerships
c.corporations
d.nonprofit institutions
e.S-corporations
Click here for the SOLUTION
Which category includes the largest number of firms?
ECONOMICS
Multiple Choice
Which category includes the largest number of firms?
a.sole proprietorship
b.partnership
c.corporation
d.S-corporation
e.limited partnerships
Click here for the SOLUTION
Multiple Choice
Which category includes the largest number of firms?
a.sole proprietorship
b.partnership
c.corporation
d.S-corporation
e.limited partnerships
Click here for the SOLUTION
In terms of total sales, the dominant form of business firm in the U.S. economy is the
ECONOMICS
Multiple Choice
In terms of total sales, the dominant form of business firm in the U.S. economy is the
a.corporation
b.sole proprietorship
c.partnership
d.nonprofit organization
e.limited partnership corporation
Click here for the SOLUTION
Multiple Choice
In terms of total sales, the dominant form of business firm in the U.S. economy is the
a.corporation
b.sole proprietorship
c.partnership
d.nonprofit organization
e.limited partnership corporation
Click here for the SOLUTION
Which form of business organization accounts for the largest proportion of business sales in the United States?
ECONOMICS
Multiple Choice
Which form of business organization accounts for the largest proportion of business sales in the United States?
a.sole proprietorship
b.partnership
c.corporation
d.nonprofit organization
e.conglomerate
Click here for the SOLUTION
Multiple Choice
Which form of business organization accounts for the largest proportion of business sales in the United States?
a.sole proprietorship
b.partnership
c.corporation
d.nonprofit organization
e.conglomerate
Click here for the SOLUTION
A realized capital gain is
ECONOMICS
Multiple Choice
A realized capital gain is
a.the difference between the price of a share of stock and what the investor paid for it (i.e., the broker's fee)
b.the difference between the original value of a piece of equipment and its depreciated value
c.an increase in the net worth of a sole proprietorship or partnership
d.an increase in the market value of a share of stock held by an individual
e.the difference between the selling price and the purchase price of a share of stock
Click here for the SOLUTION
Multiple Choice
A realized capital gain is
a.the difference between the price of a share of stock and what the investor paid for it (i.e., the broker's fee)
b.the difference between the original value of a piece of equipment and its depreciated value
c.an increase in the net worth of a sole proprietorship or partnership
d.an increase in the market value of a share of stock held by an individual
e.the difference between the selling price and the purchase price of a share of stock
Click here for the SOLUTION
Which of the following is a disadvantage of the corporation compared to the sole proprietorship?
ECONOMICS
Multiple Choice
Which of the following is a disadvantage of the corporation compared to the sole proprietorship?
a.limited liability
b.difficulty raising start-up money
c.lack of profitability
d.corporate income is taxed twice
e.corporations are more vulnerable in the case of the death of an owner
Click here for the SOLUTION
Multiple Choice
Which of the following is a disadvantage of the corporation compared to the sole proprietorship?
a.limited liability
b.difficulty raising start-up money
c.lack of profitability
d.corporate income is taxed twice
e.corporations are more vulnerable in the case of the death of an owner
Click here for the SOLUTION
The primary reason why individuals are willing to pay entrepreneurs to organize production is
ECONOMICS
Multiple Choice
The primary reason why individuals are willing to pay entrepreneurs to organize production is
a.that they have to guarantee that the entrepreneur will make a profit
b.they avoid taxation when activities are organized by someone else
c.that it is better for businesses to pay taxes than individuals
d.that it reduces transaction costs
e.that entrepreneurs are more vulnerable in the case of the owner
Click here for the SOLUTION
Multiple Choice
The primary reason why individuals are willing to pay entrepreneurs to organize production is
a.that they have to guarantee that the entrepreneur will make a profit
b.they avoid taxation when activities are organized by someone else
c.that it is better for businesses to pay taxes than individuals
d.that it reduces transaction costs
e.that entrepreneurs are more vulnerable in the case of the owner
Click here for the SOLUTION
You own stock worth an estimated $1 million in the LPL corporation
ECONOMICS
Multiple Choice
You own stock worth an estimated $1 million in the LPL corporation. In addition, you have personal assets worth another $2 million. LPL becomes insolvent, with debts exceeding assets by $15 million. Your personal wealth will decline by
a.$0
b.$1 million
c.$1.5 million
d.$3 million
e.your proportion of the total outstanding stock shares times $15 million
Click here for the SOLUTION
Multiple Choice
You own stock worth an estimated $1 million in the LPL corporation. In addition, you have personal assets worth another $2 million. LPL becomes insolvent, with debts exceeding assets by $15 million. Your personal wealth will decline by
a.$0
b.$1 million
c.$1.5 million
d.$3 million
e.your proportion of the total outstanding stock shares times $15 million
Click here for the SOLUTION
The corporate form of business organization
ECONOMICS
Multiple Choice
The corporate form of business organization
a.is chosen by more firms than any other form of organization in the United States
b.gives firm owners limited liability
c.generates less than half of the output in the U.S. economy
d.combines the limited liability of the partnership with the personal control of the sole proprietorship
e.is the least complex form of business organization
Click here for the SOLUTION
Multiple Choice
The corporate form of business organization
a.is chosen by more firms than any other form of organization in the United States
b.gives firm owners limited liability
c.generates less than half of the output in the U.S. economy
d.combines the limited liability of the partnership with the personal control of the sole proprietorship
e.is the least complex form of business organization
Click here for the SOLUTION
Stockholders share in the profits of a corporation
ECONOMICS
Multiple Choice
Stockholders share in the profits of a corporation
a.in proportion to their years of stock ownership
b.in proportion to their ownership of stock
c.equally regardless of number of shares owned
d.only if they participate in firm management decisions
e.only if they attend stockholders' meetings
Click here for the SOLUTION
Multiple Choice
Stockholders share in the profits of a corporation
a.in proportion to their years of stock ownership
b.in proportion to their ownership of stock
c.equally regardless of number of shares owned
d.only if they participate in firm management decisions
e.only if they attend stockholders' meetings
Click here for the SOLUTION
Often trade will not occur because
ECONOMICS
Multiple Choice
Often trade will not occur because
a.transaction costs are too high
b.neither party has an opportunity cost
c.the benefits to one party just equal the losses to the other party
d.no one expects to gain from the trade
e.the profits of the firm are excessive
Click here for the SOLUTION
Multiple Choice
Often trade will not occur because
a.transaction costs are too high
b.neither party has an opportunity cost
c.the benefits to one party just equal the losses to the other party
d.no one expects to gain from the trade
e.the profits of the firm are excessive
Click here for the SOLUTION
Owners of corporations are referred to most frequently as
ECONOMICS
Multiple Choice
Owners of corporations are referred to most frequently as
a.entrepreneurs
b.lien holders
c.limited partners
d.managers
e.stockholders
Click here for the SOLUTION
Multiple Choice
Owners of corporations are referred to most frequently as
a.entrepreneurs
b.lien holders
c.limited partners
d.managers
e.stockholders
Click here for the SOLUTION
Which of the following lists the three types of firms in the United States from smallest to largest in terms of volume of sales?
ECONOMICS
Multiple Choice
Which of the following lists the three types of firms in the United States from smallest to largest in terms of volume of sales?
a.partnerships, sole proprietorships, corporations
b.sole proprietorships, partnerships, corporations
c.sole proprietorships, corporations, partnerships
d.corporations, partnerships, sole proprietorships
e.partnerships, corporations, sole proprietorships
Click here for the SOLUTION
Multiple Choice
Which of the following lists the three types of firms in the United States from smallest to largest in terms of volume of sales?
a.partnerships, sole proprietorships, corporations
b.sole proprietorships, partnerships, corporations
c.sole proprietorships, corporations, partnerships
d.corporations, partnerships, sole proprietorships
e.partnerships, corporations, sole proprietorships
Click here for the SOLUTION
Which form of business organization is the least common in the United States?
ECONOMICS
Multiple Choice
Which form of business organization is the least common in the United States?
a.sole proprietorship
b.partnership
c.corporation
d.nonprofit organization
e.conglomerate
Click here for the SOLUTION
Multiple Choice
Which form of business organization is the least common in the United States?
a.sole proprietorship
b.partnership
c.corporation
d.nonprofit organization
e.conglomerate
Click here for the SOLUTION
Suppose you form a legal partnership with your best friend, and she purchases consulting services calling for a $100,000 fee
ECONOMICS
Multiple Choice
Suppose you form a legal partnership with your best friend, and she purchases consulting services calling for a $100,000 fee. Your business is broke, and you never wanted the consultants to work for you -- only your partner did. For how much of this debt are you legally liable?
a.none of it
b.all of the $100,000
c.the proportion reflected by the proportion of the business owned
d.only an amount equal to the assets of the business
e.$50,000
Click here for the SOLUTION
Multiple Choice
Suppose you form a legal partnership with your best friend, and she purchases consulting services calling for a $100,000 fee. Your business is broke, and you never wanted the consultants to work for you -- only your partner did. For how much of this debt are you legally liable?
a.none of it
b.all of the $100,000
c.the proportion reflected by the proportion of the business owned
d.only an amount equal to the assets of the business
e.$50,000
Click here for the SOLUTION
Messitt and McNulty spend $50,000 each to form a law partnership
ECONOMICS
Multiple Choice
Messitt and McNulty spend $50,000 each to form a law partnership. On the first day someone trips over a potted plant in their lobby and sues them for $400,000. Which of the following is true?
a.If a $400,000 judgment is against the partnership, then each partner will have to pay $200,000.
b.If a $400,000 judgment is against the partnership and if McNulty cannot afford to pay any of it, then Messitt is liable for $400,000.
c.Messitt's liability is limited to $300,000 because she owns three quarters of the firm.
d.Each individual partner cannot be sued for more than $200,000.
e.Only McNulty is personally responsible for the damages because he was the one who put the potted plant in the office.
Click here for the SOLUTION
Multiple Choice
Messitt and McNulty spend $50,000 each to form a law partnership. On the first day someone trips over a potted plant in their lobby and sues them for $400,000. Which of the following is true?
a.If a $400,000 judgment is against the partnership, then each partner will have to pay $200,000.
b.If a $400,000 judgment is against the partnership and if McNulty cannot afford to pay any of it, then Messitt is liable for $400,000.
c.Messitt's liability is limited to $300,000 because she owns three quarters of the firm.
d.Each individual partner cannot be sued for more than $200,000.
e.Only McNulty is personally responsible for the damages because he was the one who put the potted plant in the office.
Click here for the SOLUTION
All of the following are advantages of partnerships except one
ECONOMICS
Multiple Choice
All of the following are advantages of partnerships except one. Which is the exception?
a.they are relatively easy to start
b.their profits are taxed once as personal income
c.their liability is limited by each partner's share of the business
d.a greater opportunity for specialization by the owners
e.a continuation of the firm if one partner dies
Click here for the SOLUTION
Multiple Choice
All of the following are advantages of partnerships except one. Which is the exception?
a.they are relatively easy to start
b.their profits are taxed once as personal income
c.their liability is limited by each partner's share of the business
d.a greater opportunity for specialization by the owners
e.a continuation of the firm if one partner dies
Click here for the SOLUTION
Which of the following is most likely to be a partnership?
ECONOMICS
Multiple Choice
Which of the following is most likely to be a partnership?
a.Uncle Mort's Red Wrigglers
b.the accounting firm of Hope and Williams
c.General Motors
d.the Boston Symphony Orchestra
e.the U.S. Post Office
Click here for the SOLUTION
Multiple Choice
Which of the following is most likely to be a partnership?
a.Uncle Mort's Red Wrigglers
b.the accounting firm of Hope and Williams
c.General Motors
d.the Boston Symphony Orchestra
e.the U.S. Post Office
Click here for the SOLUTION
In terms of the numbers of firms in the U.S. economy, the most common type of firm is the
ECONOMICS
Multiple Choice
In terms of the numbers of firms in the U.S. economy, the most common type of firm is the
a.corporation
b.partnership
c.sole proprietorship
d.nonprofit organization
e.limited partnership corporation
Click here for the SOLUTION
Multiple Choice
In terms of the numbers of firms in the U.S. economy, the most common type of firm is the
a.corporation
b.partnership
c.sole proprietorship
d.nonprofit organization
e.limited partnership corporation
Click here for the SOLUTION
Which of the following is true about sole proprietorship in the United States?
ECONOMICS
Multiple Choice
Which of the following is true about sole proprietorship in the United States?
a.It is the most common form of business organization.
b.It is responsible for a large portion of total production of goods and services.
c.It offers the owner the least personal liability of any form of business organization.
d.There is no opportunity cost to operating the business.
e.Only one individual can work in such a firm.
Click here for the SOLUTION
Multiple Choice
Which of the following is true about sole proprietorship in the United States?
a.It is the most common form of business organization.
b.It is responsible for a large portion of total production of goods and services.
c.It offers the owner the least personal liability of any form of business organization.
d.There is no opportunity cost to operating the business.
e.Only one individual can work in such a firm.
Click here for the SOLUTION
Which form of business organization is the most common in the United States?
ECONOMICS
Multiple Choice
Which form of business organization is the most common in the United States?
a.sole proprietorship
b.partnership
c.corporation
d.nonprofit organization
e.S-corporation
Click here for the SOLUTION
Multiple Choice
Which form of business organization is the most common in the United States?
a.sole proprietorship
b.partnership
c.corporation
d.nonprofit organization
e.S-corporation
Click here for the SOLUTION
Suppose you own a proprietorship that is in serious financial difficulty
ECONOMICS
Multiple Choice
Suppose you own a proprietorship that is in serious financial difficulty. The assets of the company are $100,000, but liabilities are $175,000. You also have, however, stock in General Motors worth $200,000. If you file bankruptcy, what amount of personal assets do you stand to lose?
a.$100,000
b.$75,000
c.$200,000
d.$275,000
e.$375,000
Click here for the SOLUTION
Multiple Choice
Suppose you own a proprietorship that is in serious financial difficulty. The assets of the company are $100,000, but liabilities are $175,000. You also have, however, stock in General Motors worth $200,000. If you file bankruptcy, what amount of personal assets do you stand to lose?
a.$100,000
b.$75,000
c.$200,000
d.$275,000
e.$375,000
Click here for the SOLUTION
Brian is the sole proprietor owner of Long Voyage Software, which generates maps for wilderness trips
ECONOMICS
Multiple Choice
Brian is the sole proprietor owner of Long Voyage Software, which generates maps for wilderness trips. He started the business with an initial investment of $80,000. A faulty map caused one customer to get hopelessly lost. After her rescue and recuperation, she sued Long Voyage for $5,000,000. Which of the following is true?
a.The customer can be awarded only $80,000--what the firm has available to pay.
b.The customer can be awarded $5,000,000 but can get only $80,000.
c.The customer can be awarded $5,000,000, but Brian personally won't have to pay more than $80,000.
d.If $5,000,000 is awarded, Brian will have to pay none of it.
e.If $5,000,000 is awarded, Brian is personally responsible for paying all of it.
Click here for the SOLUTION
Multiple Choice
Brian is the sole proprietor owner of Long Voyage Software, which generates maps for wilderness trips. He started the business with an initial investment of $80,000. A faulty map caused one customer to get hopelessly lost. After her rescue and recuperation, she sued Long Voyage for $5,000,000. Which of the following is true?
a.The customer can be awarded only $80,000--what the firm has available to pay.
b.The customer can be awarded $5,000,000 but can get only $80,000.
c.The customer can be awarded $5,000,000, but Brian personally won't have to pay more than $80,000.
d.If $5,000,000 is awarded, Brian will have to pay none of it.
e.If $5,000,000 is awarded, Brian is personally responsible for paying all of it.
Click here for the SOLUTION
One disadvantage of a sole proprietorship as a form of business organization is that
ECONOMICS
Multiple Choice
One disadvantage of a sole proprietorship as a form of business organization is that
a.sole proprietorships cannot lower the transaction costs associated with contracting with resource owners
b.sole proprietorships are less efficient than corporations, because they are less specialized in production
c.owners of sole proprietorships can lose all their personal assets if the business is sued or fails
d.owners of sole proprietorships generally find it difficult to negotiate separation agreements with the other partners in the firm
e.owners of sole proprietorships generally have very little control over how they operate their businesses
Click here for the SOLUTION
Multiple Choice
One disadvantage of a sole proprietorship as a form of business organization is that
a.sole proprietorships cannot lower the transaction costs associated with contracting with resource owners
b.sole proprietorships are less efficient than corporations, because they are less specialized in production
c.owners of sole proprietorships can lose all their personal assets if the business is sued or fails
d.owners of sole proprietorships generally find it difficult to negotiate separation agreements with the other partners in the firm
e.owners of sole proprietorships generally have very little control over how they operate their businesses
Click here for the SOLUTION
Which of the following is an advantage of a sole proprietorship?
ECONOMICS
Multiple Choice
Which of the following is an advantage of a sole proprietorship?
a.the ability to pool resources
b.limited liability
c.double tax exemption of the firm's earnings
d.ease of organization
e.ease of raising funds
Click here for the SOLUTION
Multiple Choice
Which of the following is an advantage of a sole proprietorship?
a.the ability to pool resources
b.limited liability
c.double tax exemption of the firm's earnings
d.ease of organization
e.ease of raising funds
Click here for the SOLUTION
Which of the following is a major advantage of the sole proprietorship?
ECONOMICS
Multiple Choice
Which of the following is a major advantage of the sole proprietorship?
a.separation of ownership and control
b.limited liability for business debt
c.transferability of ownership and firm continuity over time
d.ease of start-up
e.ease of obtaining financing
Click here for the SOLUTION
Multiple Choice
Which of the following is a major advantage of the sole proprietorship?
a.separation of ownership and control
b.limited liability for business debt
c.transferability of ownership and firm continuity over time
d.ease of start-up
e.ease of obtaining financing
Click here for the SOLUTION
A major disadvantage of the corporate form of business is limited liability
ECONOMICS
Multiple Choice
A major disadvantage of the corporate form of business is limited liability
a.True
b.False
Click here for the SOLUTION
Multiple Choice
A major disadvantage of the corporate form of business is limited liability
a.True
b.False
Click here for the SOLUTION
The least common form of business organization in the United States is the partnership
ECONOMICS
Multiple Choice
The least common form of business organization in the United States is the partnership
a.True
b.False
Click here for the SOLUTION
Multiple Choice
The least common form of business organization in the United States is the partnership
a.True
b.False
Click here for the SOLUTION
The most common form of business organization in the United States is the sole proprietorship
ECONOMICS
Multiple Choice
The most common form of business organization in the United States is the sole proprietorship
a.True
b.False
Click here for the SOLUTION
Multiple Choice
The most common form of business organization in the United States is the sole proprietorship
a.True
b.False
Click here for the SOLUTION
A disadvantage of the corporate form of business organization is that corporate income is taxed twice
ECONOMICS
Multiple Choice
A disadvantage of the corporate form of business organization is that corporate income is taxed twice
a.True
b.False
Click here for the SOLUTION
Multiple Choice
A disadvantage of the corporate form of business organization is that corporate income is taxed twice
a.True
b.False
Click here for the SOLUTION
A major advantage of the corporate form of business organization is the limited personal liability of the owners
ECONOMICS
Multiple Choice
A major advantage of the corporate form of business organization is the limited personal liability of the owners
a.True
b.False
Click here for the SOLUTION
Multiple Choice
A major advantage of the corporate form of business organization is the limited personal liability of the owners
a.True
b.False
Click here for the SOLUTION
The partnership is the least common form of business organization in the United States
ECONOMICS
Multiple Choice
The partnership is the least common form of business organization in the United States
a.True
b.False
Click here for the SOLUTION
Multiple Choice
The partnership is the least common form of business organization in the United States
a.True
b.False
Click here for the SOLUTION
A large number of businesses are organized as sole proprietorships because it is easy for them to acquire large sums of financing
ECONOMICS
Multiple Choice
A large number of businesses are organized as sole proprietorships because it is easy for them to acquire large sums of financing
a.True
b.False
Click here for the SOLUTION
Multiple Choice
A large number of businesses are organized as sole proprietorships because it is easy for them to acquire large sums of financing
a.True
b.False
Click here for the SOLUTION
Sole proprietorships produce more goods and services than does any other form of business organization
ECONOMICS
Multiple Choice
Sole proprietorships produce more goods and services than does any other form of business organization
a.True
b.False
Click here for the SOLUTION
Multiple Choice
Sole proprietorships produce more goods and services than does any other form of business organization
a.True
b.False
Click here for the SOLUTION
2. Which of the following did not occur during the Industrial Revolution?
ECONOMICS
Multiple Choice
Which of the following did not occur during the Industrial Revolution?
a.Production became more reliant on highly specialized equipment.
b.A more efficient division of labor was promoted.
c.Workers bore much of the costs of production.
d.The transaction costs of contracting with individual resource owners were reduced.
e.Technological development increased the productivity of most workers.
Click here for the SOLUTION
Multiple Choice
Which of the following did not occur during the Industrial Revolution?
a.Production became more reliant on highly specialized equipment.
b.A more efficient division of labor was promoted.
c.Workers bore much of the costs of production.
d.The transaction costs of contracting with individual resource owners were reduced.
e.Technological development increased the productivity of most workers.
Click here for the SOLUTION
Which of the following did not occur during the Industrial Revolution?
ECONOMICS
Multiple Choice
Which of the following did not occur during the Industrial Revolution?
a.worker productivity increased
b.factories became larger
c.direct supervision of labor decreased
d.division of labor increased
e.fewer stages of production were organized in the household
Click here for the SOLUTION
Multiple Choice
Which of the following did not occur during the Industrial Revolution?
a.worker productivity increased
b.factories became larger
c.direct supervision of labor decreased
d.division of labor increased
e.fewer stages of production were organized in the household
Click here for the SOLUTION
A cottage industry is one that
ECONOMICS
Multiple Choice
A cottage industry is one that
a.produces rural housing
b.takes advantage of the division of labor
c.uses highly specialized resources in a complex production process
d.produces cottage cheese
e.carries out production in workers' homes
Click here for the SOLUTION
Multiple Choice
A cottage industry is one that
a.produces rural housing
b.takes advantage of the division of labor
c.uses highly specialized resources in a complex production process
d.produces cottage cheese
e.carries out production in workers' homes
Click here for the SOLUTION
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