If an economy is currently experiencing both full employment and price stability, a major tax reduction will probably cause.
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1 .Which of the following statements regarding increases in price levels is most true? A period of inflation.
A Increases the price level, which is negatively related to the purchasing power of money. B Harms anyone who has an obligation to pay a specific amount and benefits anyone who is entitled to receive a specific amount. C Increases the price level, which benefits those who are entitled to receive spe...
2 .When markets are perfectly competitive, consumers.
A Have goods and services produced at the lowest cost in the long run. B Must choose the brands they buy solely on the basis of informational advertising. C Must search for the lowest price for the products they buy. D Do not receive any consumer surplus unless producers choose to overproduce.
3 .Patents are granted in order to encourage firms to invest in the research and development of new products. Patents are an example of.
A Market concentration. B Collusion. C Exclusionary practices. D Barriers to entry.
4 .Tennis rackets and tennis balls are.
A Inferior goods. B Substitute goods. C Complementary goods. D Independent goods.
5 .Which one of the following is most likely to accompany a reduction in aggregate demand?
A A decrease in the unemployment rate. B An increase in real GDP.? C An increase in the price level. D A decrease in employment.
7 .If, in a competitive market, a price ceiling is imposed establishing a maximum price below the market equilibrium price, this price ceiling would result in.
A Shortages because the quantity demanded would exceed the quantity supplied. B No effect on the quantity supplied or demanded. C Surpluses because the supply curve would shift to the right. D Surpluses because the quantity supplied would exceed the quantity demanded.
8 .Jan Corp. amended its defined benefit pension plan on January 1. Granting a total credit of USD 100,000 to four employees for services rendered prior to the plan’s adoption. The employees, A,B,C and D, are expected to retire from company as follows.A will retire after three years B and C will retire after five yearsD will retire after seven years
A USD 0 B USD 20,000 C USD 25,000 D USD 5,000
9 .What type of unemployment is shown when individuals do not have the qualifications or skills necessary to fill available jobs?
A Natural. B Cyclical. C Structural. D Frictional.
10 .Webb Co. a publicly traded company, implemented a defined benefit pension plan for its employees on January 1, year 1. During year 1 and year 2, Webb’s contributions fully funded the plan. The following data are provided for year 4 and year 3. Year 15 Estimated Year 14 Actual Projected benefit obligation,December 31 USD 750,000 USD 700,000 Accumulated benefit obligation,December 31 520,000 500,000Pension asset at fair value, December 31 675,000 600,000Projected benefit obligation in excess Of pension plan December 31 75,000 100,000Pension expense 90,000 50,000What amount should Webb report as a pension liability in its December 31, year 15 balance sheet?
A USD 50,000 B USD 60,000 C USD 75,000 D USD 100,000
