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6. Which of the following statements about the tort of negligence is true?
(A) It cannot be used as a basis for liability for defective products. (B) It is a strict liability tort with no defenses. (C) It requires proof of some intentional conduct. (D) It requires proof of breach of a statutory or common-law duty.
7. Which of the following statements about a systems flowchart is true?
(A) It is used in systems design to define and describe each piece of data. (B) It is a method of writing programs using only three basic constructs: sequence, selection, and repetition. (C) It documents the sequence of processing steps that take place in an information system. (D) It documents the logical design of an information system.
8. On May 31, Company O's general ledger shows a cash balance of $5,123. The May 31 bank statement shows a balance of $4,905. Other information is available as follows:
1. A May 31 deposit of $300 does not appear on the bank statement; but a $3 service charge does. 2. A customer's $40 insufficient funds check has been returned with the bank statement. 3. Outstanding checks of $10, $15, and $100 are identified on May
What is the correct cash balance on May 31?
(A) $4,905 (B) $5,080 (C) $5,166 (D) $5,204
9. Within the context of the capital asset pricing model (CAPM), the risk measure known as beta is often computed by regressing the return of the company's stock against the
(A) return on the company's bonds (B) return on the market portfolio (C) change in the gross domestic product (D) change in the consumer price index
10. A project consists of 150 jobs. The expected completion time for each job is given in days. The project has three critical paths with two jobs in common, J and K. In order to finish the project one day early, the completion time should be reduced one day for
(A) each of the 150 jobs (B) each of the jobs on the three critical paths (C) either Job J or Job K (D) both Job J and Job K

11. The Organization of the Petroleum Exporting Countries (OPEC) reduces production by 10 percent, and the growth rate of the world economy begins to escalate. How will the simultaneous occurrence of these events affect the equilibrium price and quantity in the world petroleum market?
(A) Price will increase, but quantity will remain unchanged. (B) Price will increase, but quantity is indeterminate. (C) Quantity will increase, but price is indeterminate. (D) Both price and quantity will increase.
12. Which of the following would most likely occur as a result of the United States government's imposing tariffs on foreign steel imports?
(A) The price of steel produced in the United States would decrease. (B) The price of imported steel in the United States would decrease. (C) Employment in the United States steel industry would increase. (D) Government tax revenue would fall.
13. In an economy the unemployment rate is 10 percent and the inflation rate is 1 percent. An appropriate fiscal policy in this phase of the business cycle would be to
(A) increase government spending (B) increase income taxes (C) decrease transfer payments (D) decrease the money supply
14. Which of the following is an appropriate Federal Reserve action to stimulate the United States economy?
(A) Selling government bonds on the open market (B) Increasing the discount rate (C) Reducing the reserve requirement (D) Cutting taxes
15. If the spread between the spot and forward exchange rates of two currencies equals the interest rate difference between the two countries, this phenomenon is referred to as
(A) purchasing-power equality (B) commodity arbitrage (C) currency hedging (D) interest-rate parity

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