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1) What effect do current technology changes have on managerial accounting?
A. Increase in product costs
B. Reduction of reporting costs of managerial accounting information
C. Creation of the middleman
D. Reduction of emphasis on the value chain

2) The cost principle is the basis for preparing financial statements because it is
__________?
A. an international accounting standard
B. a conservative value
C. the most accurate measure of purchasing power
D. relevant and objectively measured, and verifiable

3) Which of the following would be most likely to contribute to the breakdown of a cartel in a natural resource (e.g., bauxite) market?
A. High compatibility of member interests
B. High prices
C. Unequal member ownership of the natural resource
D. Low price elasticity of demand

4) Assume oligopoly firms are profit maximizers, they do not form a cartel, and they take other firms' production levels as given. Then in equilibrium the output effect __________.
A. must balance with the price effect
B. must dominate the price effect
C. can be larger or smaller than the price effect
A. must balance with the price effect
D. must be smaller than the price effect

5) When, in a particular market, the law of demand and the law of supply both apply, the imposition of a binding price ceiling in that market causes quantity demanded to be __________?
A. equal to quantity supplied
B. greater than quantity supplied
C. double the quantity supplied
D. less than quantity supplied

6) If a binding price ceiling were imposed in the computer market, __________.
A. a shortage of computers would develop
B. the demand for computers would increase
C. the quality of computers would increase
D. the supply of computers would decrease

7) When a firm sells a good or a service, the sale contributes to the nation's income __________.
A. only if the buyer of the good or service is a household
B. whether the buyer of the good or a service is a household, another firm, or the
government
C. We have to know whether the item being sold is a good or a service in order to answer
the question
D. only if the buyer of the good or service is a household or another firm

8) The model of aggregate demand and aggregate supply explains the relationship between __________.
A. the price and quantity of a particular good
B. wages and employment
C. real GDP and the price level
A. the price and quantity of a particular good
D. unemployment and output

9) In the market for foreign currency exchange in the open economy macroeconomic model, the amount of net capital outflow represents the quantity of dollars __________.
A. supplied for the purpose of selling assets domestically
B. demanded for the purpose of buying U.S. net exports of goods and services
C. demanded for the purpose of importing foreign goods and services
D. supplied for the purpose of buying assets abroad

10) Many U.S. business leaders argue that the current state of U.S. net exports is the result of __________.
A. U.S. export subsidies.
B. unproductive U.S. workers.
C. unfair foreign competition.
D. free trade policies of foreign governments.

11) The balance of payment account is made up of:
A. a current account and a financial and capital account.
B. an investment account and a consumption account.
C. a monetary account and a fiscal account.
D. an import account and an export account.

12) In order to be successful, a cartel must __________.
A. agree on the prices charged by each member, but they need not agree on amounts produced
B. agree on the total level of production for the cartel, but they need not agree on the amount produced by each member
C. agree on the total level of production and on the amount produced by each member

D. find a way to encourage members to produce more than they would otherwise produce

13) The Federal Open Market Committee __________.
A. is required by its charter to change the money supply using a complex formula that concerns the tradeoff between inflation and unemployment
B. is required to increase the money supply by a given growth rate each year
C. is required to keep the interest rate within a range set by Congress
D. operates with almost complete discretion over monetary policy

14) Which of the following statements does NOT support Total Quality Management?
A. Break down barriers among departments
B. Creating silos between departments
C. Strive for long-term improvement rather than short-term profit
D. Use numerical quotas
E. Build long-term relationships instead of awarding business on price tag alone

15) Which of these describes a vision, as it pertains to leadership?
A. A long-term goal of an organization
B. A mental image of a future state of an organization
C. The method through which leaders achieve goals
D. A short-term goal of an organization
E. Likely to land you in a padded room

16) When a company establishes technology leadership by pioneering unique products or services that command premium prices, it has benefited from a:
A. High-cost strategy
B. High-price strategy
C. Low-cost strategy
D. Differentiation strategy
E. Diversification strategy

17) To estimate the average annual expenses of students on books and class materials a sample of size 36 is taken. The average is $850 and the standard deviation is $54. A 99% confidence interval for the population mean is __________.
A. $825.48 to $874.52
B. $826.82 to $873.18
C. $832.36 to $867.64

D. $823.72 to $876.28

18) Which of the following receives at least some protection under the U.S. Constitution?
A. Offensive speech
B. Neither obscene speech nor offensive speech
C. Obscene speech
D. Both obscene speech and offensive speech

19) A "closely held corporation" is a corporation that is owned by:
A. The government.
B. A nonprofit organization.