Patents are granted in order to encourage firms to invest in the research and development of new products. Patents are an example of.
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A Inventory subsidiary. B Cash disbursements. C Cash receipts. D Payroll transactions.
2 .Which of the following types of control plans is particular to a specific process or subsystem, rather than related to the timing of its occurrence?
A Corrective. B Detective. C Application. D Preventive.
3 .Which one of the following terms best describes a Decision Support System (DSS)?
A Structured system. B Interactive system. C Management reporting system. D Formalized system.
4 .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...
5 .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.
7 .Tennis rackets and tennis balls are.
A Inferior goods. B Substitute goods. C Complementary goods. D Independent goods.
8 .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.
9 .If an economy is currently experiencing both full employment and price stability, a major tax reduction will probably cause.
A An acceleration in the inflation rate, unless government expenditures are also reduced. B A decrease in consumption. C An increase in the unemployment rate. D No change in real GDP or the price level.
10 .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.
