If a woman does not get an interview for a job requiring heavy lifting because the manager has noted that the average women can lift less than the average man, this is a) a legal example of statistical discrimination. b) an illegal example of statistical discrimination. c) a legal example of adverse impact discrimination. d) an illegal example of adverse impact discrimination.
> The notion that the United States is the “land of opportunity” where who your parents are and how much they earn is unrelated to your income is (relative to other industrial powers) a) clearly shown in the data to be accurate. b) clearly shown in the d
> When evaluating a business decision, an economist will often resort to the use of present value because a) the profits may not be large enough to warrant the time and attention of the investor. b) the investment occurs in one-time period and the profit
> An industry in which there are many competitors with specific marketing niches is likely to be characterized by a) monopoly. b) oligopoly. c) monopolistic competition. d) perfect competition.
> A production possibilities frontier is a simple model of a) scarcity and allocation. b) prices and output. c) production and costs. d) inputs and outputs.
> Scarcity implies that the allocation scheme chosen by society can a) not make more of any one good. b) always make more of any good. c) typically make more of a good but at the expense of making less of another. d) always make more of all goods simultan
> Social discord resulting from income inequality can be lessened if there is (are) a) high levels of intergenerational income mobility. b) high levels of income mobility of individuals. c) belief that the economic system is rigged in favor of the rich.
> Under many economic models of terrorism, the terrorist is assumed to act a) without regard for incentives, costs, or benefits. b) in a predictable way, since they maximize costs subject to minimizing benefits. c) in a predictable way, since they maxim
> The benefits of income inequality are a) always greater than the costs. b) always less than the costs. c) associated with rewarding hard work and work that society values. d) associated with the social discord that it creates.
> The negative externality associated with self-protection from terrorism suggests that a) terrorists cause more damage than they think they will. b) people engage in less self-protection than they should. c) people engage in the right amount of self-pr
> The question of whether Social Security increases or decreases savings depends mostly on whether the _________ effect outweighs the ________ effect or visa versa. a) bequest; asset substitution b) bequest; induced retirement c) asset substitution; in
> The most obvious pattern in poverty rates is the degree to which they are higher during a) Democratic administrations. b) wars. c) odd years. d) recessions.
> Affirmative action a) can take many forms. b) is almost always a racial quota. c) applies only to women. d) has been typically been declared unconstitutional.
> In most school districts, all other characteristics held constant, an excellent teacher earns ____ a poor teacher. a) the same as b) more than c) less than
> In most school districts, all other characteristics held constant, an excellent teacher earns ____ a poor teacher. a) the same as b) more than c) less than
> The rational criminal model explains crimes of a) passion. b) stupidity. c) profit. d) love.
> Those who believe that wages paid to minorities will rise without government intervention believe that bosses are primarily motivated by a) profit. b) religion. c) doing right. d) helping the downtrodden.
> The government’s role in terrorism insurance is that of a) a primary provider. b) a reinsurance provider of last resort/re-reinsurer. c) innocent bystander. d) disinterested observer.
> The principal-agent problem centers on the separation of a) supply and demand. b) investors and savers. c) owners and managers. d) interest and dividends.
> The asset substitution effect implies that Social Security will _______ from where it would have been without it. a) increase savings b) increase work c) decrease work d) decrease savings
> Current evidence suggests that the long-term benefits of Head Start are a) sufficiently positive to make the net present value positive. b) sufficiently positive such that when added to the short- and intermediate-term benefits, the net present value
> The distribution of aid to the poor between in-kind and in-cash is a) roughly equal. b) weighed heavily toward in-cash benefits c) weighted slightly toward in-kind benefits d) weighted heavily toward in-kind benefits.
> If all K–12 schools were privately owned with a constant subsidy paid by the government to the school for each student enrolled, what would be one potential and likely negative consequence? a) Cherry picking b) Collective bargaining c) Tenure d) Vouc
> The rational criminal model draws a parallel to the thought processes of a) investors. b) educators. c) law enforcement officers. d) politicians.
> If all K–12 schools were privately owned with a constant subsidy paid by the government to the school for each student enrolled, what would be one potential and likely negative consequence? a) Cherry picking b) Collective bargaining c) Tenure d) Vouc
> History suggests that rent control laws a) tend to be declared unconstitutional. b) tend to be overturned soon after they are adopted. c) tend to become a permanent fixture of a community. d) are incredibly unpopular.
> The argument that the minimum wage hurts society more than it helps is based on ________analysis. a) consumer and producer surplus b) production possibilities c) aggregate supply–aggregate demand d) marginal
> Looking at the Figure 32.3, maintaining Pfloor as the target minimum price (rather than equilibrium) by having the government purchase how much of the product farmers wished to produce would cost the government _____ dollars. a) OP*CQ* b) QDBEQS c) O
> Which of the following had the effect of increasing income inequality? a) The increase in the female labor force participation rate b) The decrease in globalization of capital c) The increase in globalization of trade in steel, autos, and consumer dur
> The suit against Microsoft accused it of a) using its own innovation to thwart competition. b) using its Windows monopoly to foster other monopolies. c) incorporating more innovations into the Office Suite. d) charging more than the Windows was wort
> To an economist, the correct distribution of money among police, the justice system and prisons is one that a) sets an equal amount to each. b) sets the amount each gets equal to its average benefit. c) sets the amount each gets so that none is wasted
> Labor unions have greater representation in ________ employees. a) public b) service c) manufacturing d) retail
> The chief effect of reinsurance is that a) insurance premiums are higher. b) insurance companies are prevented from engaging in fraud. c) insurance companies can offer insurance without fear of a major event causing them to go out of business. d) con
> The argument that increasing the number of casinos in a state will increase overall tax revenue in the state is a) substantially correct, because they pay substantial taxes. b) overstated but still partially correct, because there is tax substitution,
> If an attorney wishes to combine the small claims of many people into one lawsuit against a defendant, he or she is engaging in a a) summary judgment. b) frivolous tort. c) pointed claim. d) class action lawsuit.
> The predominant market form for the grocery business in the majority of U.S. cities is one of a) monopoly. b) oligopoly. c) monopolistic competition. d) perfect competition.
> A stock market exists a) only to service the sale of new issues, called IPOs. b) to provide liquidity to all stocks, including recent IPOs. c) help policy makers predict the future. d) to make the rich richer.
> Economists note that a reason exists for policy makers to subsidize sports stadiums, and it is that a) they bring in billions of dollars to their communities. b) they result in large increases in city payrolls. c) they result in enormous increases in
> If someone is in the 25 percent tax bracket, this means that ______ is owed in taxes. a) 25 percent of his or her salary b) 25 percent of his or her adjusted gross income c) 25 percent of his or her taxable income d) less than 25 percent of his or
> In 2013, a worker who earned $125,000 would have _____ in Social Security taxes taken out of his or her pay and _____ would also be paid by the employer. a) $17,396; $17,396 (both equal to $113,700*.153) b) $8,860.45; $8,860.45 (both equal to $113,700*
> The typical Head Start teacher is a) an ill-trained minimum-wage worker. b) a professional credentialed worker making more than typical day-care worker. c) a college graduate making $30,000 a year or more. d) a professional with a master’s degree or
> Using a poverty line of $12,500, under the current system of calculating the poverty rate, which of the following people are considered to be in poverty and probably ought not to be? a) A rural family whose sole income earner is from a minimum wage ($10
> The evidence on charter schools is that they a) have had no impact in any locations they have been tried. b) have had an enormously positive impact on education generally. c) have had a negative impact on students. d) have had some impact in some loc
> The evidence on charter schools is that they a) have had no impact in any locations they have been tried. b) have had an enormously positive impact on education generally. c) have had a negative impact on students. d) have had some impact in some loc
> Which of the following is likely to occur after several years of relevant rent control? a) Rents exceeding equilibrium b) An increase in available housing c) A decrease in available housing d) Rents equaling equilibrium
> When an existing prescription drug goes over the counter a) everyone wins. b) drug companies win but consumer lose. c) drug companies lose but consumers win. d) drug companies likely win because of the increase in sales, and consumers may win depend
> The model for a promoter is _____ whereas the model for scalpers is that of ________. a) monopoly; monopolistic competition b) monopolistic competition; perfect competition c) monopoly; oligopoly d) monopoly; perfect competition
> The argument that the minimum wage does not significantly increase unemployment is based on a) producer surplus. b) consumer surplus. c) elasticity. d) aggregate demand.
> Looking at the Figure 32.3, maintaining Pfloor as the target minimum price (rather than equilibrium) would a) raise consumer surplus more than it would decrease producer surplus. b) raise producer surplus more than it would decrease consumer surplus.
> Which of the following had the effect of decreasing income inequality? a) The increase in the female labor force participation rate b) The increase in globalization of capital c) The increase in globalization of trade in steel, autos, and consumer dur
> Standard Oil’s trust involved monopolizing a) gas stations only. b) oil exploration only. c) refining. d) all aspects of the petroleum industry.
> The average cost per crime has been estimated at between a) $500 and $2,500. b) $1,000 and $10,000. c) $10,000 and $100,000. d) $100,000 and $1,000,000.
> The percentage that casinos make on the average bet is called the a) vig. b) rip. c) take. d) rob.
> Economists call the increase in insurance costs that resulted from the September 11th attacks an _____ shock which leads to the ________. a) aggregate demand; aggregate demand curve shifting left b) aggregate demand; aggregate demand curve shifting rig
> The impact of Walmart on its suppliers is a) unambiguously positive. b) unambiguously negative. c) positive and negative in that Walmart enlarges the market for their products but demands a much lower price than they typically receive. d) negligible.
> One significant feature of a “single-payer” system lacking in the U.S. system is a) government involvement in health care. b) coverage for the elderly. c) coverage for the poor. d) universal coverage.
> A union that trains and restricts supply has an effect on the supply curve that moves it to the ______ and, at a point, makes it _______. a) left; vertical b) left; horizontal c) right; vertical d) right; horizontal
> Stock market crashes tend to result when stocks get _______ their fundamental values. a) too far below b) too close to c) too far above d) confused with
> The motorsports industry is dominated by independent teams running in series operated as a) monopolies. b) oligopolies. c) monopolistic competitors. d) perfect competitors.
> Cartels are considered ______ because each participant is motivated to ______. a) stable; work with each other cooperatively b) stable; work in their own interest to produce more c) unstable; work with each other cooperatively d) unstable; work in th
> If Congress wants to use $100 billion on tax cuts, the version that would help a family of four making $40,000 a year would a) lower marginal tax rates by one percentage point. b) increase the standard deduction by $2,000. c) increase the child credit
> Since its inception, the portion of earnings that have been subject to the Social Security tax has a) remained roughly intact. b) increased substantially. c) decreased slightly. d) decreased substantially.
> The early evidence on programs like Head Start made it clear that a) the rate of return to these programs was very low. b) the net present value of the external benefits was positive. c) the short-run benefits were not worth the costs. d) the long-ru
> Using a poverty line of $12,500, under the current system of calculating the poverty rate, which of the following people are not considered to be in poverty and probably ought to be? a) A rural family whose sole income earner is from a minimum wage ($10
> The institution of teacher tenure is meant to a) ensure job security for teachers with 10 years of experience. b) ensure that teachers do not get fired for political reasons. c) allow teachers to engage in any behavior they wish. d) allow the easy fi
> The institution of teacher tenure is meant to a) ensure job security for teachers with 10 years of experience. b) ensure that teachers do not get fired for political reasons. c) allow teachers to engage in any behavior they wish. d) allow the easy fi
> An environmental economist would likely recommend which of the following policies? a) Eliminate fossil fuel consumption b) A tax on gasoline equal to the environmental damage caused by a gallon of gasoline c) A tax on gasoline greater than environment
> The use of a Backward-L shaped aggregate supply curve allows us to ________ in a way that other shapes would not. a) consider various levels of prices b) consider different macroeconomic points of view c) deal with shifting curves d) create an equil
> Dashan Company debits Supplies Expense for all purchases of supplies and credits Rent Revenue for all advanced rentals. For each type of adjustment, give the adjusting entry.
> Summarized operations for Lakeview Co. for the month of July are as follows. Revenues recognized: for cash $30,000; on account $70,000. Expenses incurred: for cash $26,000; on account $38,000. Indicate for Lakeview Co. (a) the total revenues, (b) the t
> Monique Enterprises had a stockholders’ equity balance of $158,000 at the beginning of the period. At the end of the accounting period, the stockholders’ equity balance was $198,000. (a) Assuming no additional investment or distributions during the perio
> Paul Scott Company reports net sales of $800,000, gross profit of $370,000, and net income of $240,000. What are its operating expenses?
> Aaron Lynch Company has the following balances in selected accounts on December 31, 2019. Service Revenue………. $40,000 Insurance Expense….……. 2,700 Supplies Expense…………. 2,450 All the accounts have normal balances. Aaron Lynch Company debits prepayments
> Journalize the following business transactions. (a) Mark Stein invests $9,000 cash in the business in exchange for shares of common stock. (b) Insurance of $800 is paid for the year. (c) Supplies of $2,000 are purchased on account. (d) Cash of $7,800 is
> The income statement of Gopitkumar Co. for the month of July shows net income of $1,400 based on Service Revenue $5,500, Salaries and Wages Expense $2,300, Supplies Expense $1,200, and Utilities Expense $600. In reviewing the statement, you discover the
> Primo Industries collected $105,000 from customers in 2019. Of the amount collected, $25,000 was for services performed in 2018. In addition, Primo performed services worth $40,000 in 2019, which will not be collected until 2020. Primo Industries also pa
> Presented below is information related to Alexis and Ryans, Attorneys at Law. Retained earnings, January 1, 2019………………$ 23,000 Legal service revenue—2019…………………………340,000 Total expenses—2019……………………………………..211,000 Assets, January 1, 2019…………………………………..8
> Presented below is financial information related to the 2019 operations of Louisa Cruise Company. Maintenance and repairs expense…………. $ 92,000 Utilities expense……………………………………..…10,000 Salaries and wages expense…………………...142,000 Advertising expense………………
> Robyn Howser is the bookkeeper for Madison Company. Robyn has been trying to determine the correct balance sheet for Madison Company. Madison’s balance sheet is shown below. Instructions Prepare a correct balance sheet. MADISON CO
> A company’s annual report usually will identify the inventory method used. Knowing that, you can analyze the effects of the inventory method on the income statement and balance sheet. Address: www.cisco.com Instructions Answer the following questions b
> A. Hall Company has the following merchandise account balances: Sales Revenue $180,000, Sales Discounts $2,000, Purchases $120,000, and Purchases Returns and Allowances $30,000. In addition, it has a beginning inventory of $40,000 and an ending inventory
> Prepare the journal entries to record these transactions on Nimmer Company’s books using a periodic inventory system. (a) On March 2, Nimmer Company purchased $900,000 of merchandise on acccount from Sen Company, terms 2/10, n/30. (b) On March 6, Nimme
> Assume the same information as in BE5-12 and also that Gallant Company has beginning inventory of $60,000, ending inventory of $90,000, and net sales of $730,000. Determine the amounts to be reported for cost of goods sold and gross profit.
> Assume that Gallant Company uses a periodic inventory system and has these account balances: Purchases $450,000, Purchase Returns and Allowances $13,000, Purchase Discounts $8,000, and Freight-In $16,000. Determine net purchases and cost of goods purch
> Minnick Co. has net sales of $105,000, cost of goods sold of $70,000, and operating expenses of $20,000. What is its gross profit and its gross profit rate?
> Assume Kader Company has the following reported amounts: Sales revenue $510,000, Sales returns and allowances $15,000, Cost of goods sold $330,000, and Operating expenses $110,000. Compute the following: (a) net sales, (b) gross profit, (c) income f
> Arndt Company provides the following information for the month ended October 31, 2019; sales on credit $280,000, cash sales $100,000, sales discounts $5,000, and sales returns and allowances $11,000. Prepare the sales section of the income statement ba
> Hudson Company has the following account balances: Sales Revenue $195,000, Sales Discounts $2,000, Cost of Goods Sold $117,000, and Inventory $40,000. Prepare the entries to record the closing of these items to Income Summary.
> From the information in BE5-4, prepare the journal entries to record these transactions on Sensat Company’s books under a perpetual inventory system.
> Prepare the journal entries to record the following transactions on Kwang Company’s books using a perpetual inventory system. (a) On March 2, Kwang Company sold $900,000 of merchandise on account to Sensat Company, terms 2/10, n/30. The cost of
> Radomir Company buys merchandise on account from Lemke Company. The selling price of the goods is $780, and the cost of the goods is $470. Both companies use perpetual inventory systems. Journalize the transaction on the books of both companies.  
> Presented below are the components in Gates Company’s income statement. Determine the missing amounts.
> At October 31, Burgess Company made an accrued expense adjusting entry of $2,100 for salaries. Prepare the reversing entry on November 1, and indicate the balances in Salaries and Wages Payable and Salaries and Wages Expense after posting the reversing
> The following are the major balance sheet classifications: Current assets (CA) Current liabilities (CL) Long-term investments (LTI) Long-term liabilities (LTL) Property, plant, and equipment (PPE) Stockholders’ equity (SE) Intangible assets (
> The balance sheet debit column of the worksheet for Hamidi Company includes the following accounts: Accounts Receivable $12,500, Prepaid Insurance $3,600, Cash $4,100, Supplies $5,200, and Debt Investments (short-term) $6,700. Prepare the current asset
> Prepare the closing entries for the Sales Revenue account, assuming a balance of $200,000 and the Cost of Goods Sold account with a $145,000 balance.
> At Creighton Company, the following errors were discovered after the transactions had been journalized and posted. Prepare the correcting entries. 1. A collection on account from a customer for $870 was recorded as a debit to Cash $870 and a credit to
> The ledger of Rios Company contains the following balances: Retained Earnings $30,000, Dividends $2,000, Service Revenue $50,000, Salaries and Wages Expense $27,000, and Supplies Expense $7,000. Prepare the closing entries at December 31.
> The ledger of Clayton Company includes the following unadjusted balances: Prepaid Insurance $3,000, Service Revenue $58,000, and Salaries and Wages Expense $25,000. Adjusting entries are required for (a) expired insurance $1,800; (b) services perform
> Mayes Company records all prepayments in income statement accounts. At April 30, the trial balance shows Supplies Expense $2,800, Service Revenue $9,200, and zero balances in related balance sheet accounts. Prepare the adjusting entries at April 30 ass
> Partial adjusted trial balance data for Parsons Company is presented in BE3-9. The balance in Common Stock is the balance as of January 1. Prepare a retained earnings statement for the year assuming net income is $12,200 for the year and Retained Earning
