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3. From the point of view of consumer surplus and producer surplus, what
problem was created when Thailand subsidized the cost of energy to
consumers to help alleviate the burden of higher energy costs?
a) It encouraged the consumption of too much fuel at the expense of other
goods.
b) It has no effect; consumers gained consumer surplus, but taxpayers lost
the same amount because they had to finance the subsidy.
c) It hurt the poor and benefitted the rich.
d) It led to less fuel being used than the amount that maximizes consumer
surplus.
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11. Brenda Butler, editor of the Republican, is trying to decide whether to take a
job at a much larger newspaper or to become the CEO and publisher of the
Republican. Brenda has to make this decision because of ________.
a) an opportunity
b) a threat
c) a problem
d) bounded rationality
15. Business environment pressures can come from which of the following?
a) Management restructuring
b) Quality control
c) Political changes
d) Cost reduction
16. The reliability of our observations is not better than the reliability of our
____________.
a) memories
b) senses
c) friends
d) family
17. Utilitarianism is
a) an act that will produce less happiness than will alternatives, it is the
right thing to do, and if it will produce more happiness, it would be
wrong to do.
b) an act that will produce more happiness than will alternatives, it is the
right thing to do, and if it will produce less happiness, it would be wrong
to do.
c) an act that will produce more happiness than will alternatives, it is the
wrong thing to do, and if it will produce less happiness, it would be right
to do.
d) an act that will produce less happiness than will alternatives, it is the
wrong thing to do, and if it will produce less happiness, it would be right
to do.
18. Refer to the graph shown. With efficient production, this firm can maximize
production at what point?
a) B
b) C
c) D
d) A
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b) is non-statutory.
c) requires findings by a court.
d) is absolute.
23. The reason economists and accountants have problems using cost analysis in
the real world is that
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29. What way can you build credibility with an audience when planning a
persuasive message?
a) Use simple language.
b) Use difficult language.
c) Use descriptive language.
d) Use hostile language.
30. Which of the following groups would be most likely to benefit from a tariff
on Japanese-manufactured light trucks (i.e., pickup trucks)?
a) U.S. consumers of pickup trucks
b) Japanese auto workers
c) U.S. domestic pickup truck manufacturers
d) U.S. firms that export products to Japan
31. What type of data visual would you use to illustrate trends over time?
a) Line chart
b) Gantt chart
c) Bar graph
d) Scatter diagrams
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40. Suppose that at the current price consumers would like to purchase 10
million large-screen televisions and 15 million are available. When the
market coordinates the demand and supply for large-screen televisions, the
price of large-screen televisions will _______________.
a) stay the same
b) rise
c) fall
d) be fixed by government
41. Laura has dreamed of playing in a symphony. She practices her instrument
every day and yet, year after year, she cannot successfully play the difficult
musical piece necessary to try out. This is an example of
a) extrinsic motivation outweighing intrinsic motivation.
b) motivation being the main factor in performance.
c) motivation not equaling performance.
d) vicarious learning being of upmost importance.
42. What are the three major steps in the writing process?
a) Prepare, Write, and Complete
b) Plan, Write, and Complete
c) Plan, Construct, and Complete
d) Prepare, Construct, and Stop
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50. According to Keynes, why might deflation create problems for an economy?
a) People would invest less into the economy.
b) In expectation of increased spending, too many entrepreneurs would
begin businesses and most would fail.
c) Consumers might expect prices to fall further and cut back consumption
now.
d) The cost of repricing goods would increase costs, and therefore reduce
profits, for businesses and they would cut production.
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