TEST BANK
for
Essentials of Economics, 6th
LU
Edition
XE
By Paul Krugman; Robin
Wells
LI
BR
(All Chapters 1-20, 100%
AR
Original Verified, A+ Grade)
Y
, Table of Content
Chapter 1: Accounting in Action
Chapter 2: The Recording Process
Chapter 3: Adjusting the Accounts
Chapter 4: Completing the Accounting Cycle
Chapter 5: Accounting for Merchandising Operations
Chapter 6: Inventories
Chapter 7: Fraud, Internal Control, and Cash
Chapter 8: Accounting for Receivables
Chapter 9: Plant Assets, Natural Resources, and Intangible Assets
Chapter 10: Liabilities
LU
Chapter 11: Corporations: Organizations, Stock Transactions, and Stockholders’ Equity
Chapter 12: Statement of Cash Flows
Chapter 13: Financial Analysis: The Big Picture
Chapter 14: Managerial Accounting
Chapter 15: Job Order Costing
XE
Chapter 15A: Job Order Costing: A Non-Debit and Credit Approach
Chapter 16: Process Costing
Chapter 16A: Process Costing: Non-Debit and Credit Approach
Chapter 17: Activity-Based Costing
Chapter 18: Cost-Volume-Profit
LI
Chapter 19: Cost-Volume-Profit Analysis: Additional Issues
Chapter 20: Incremental Analysis
Chapter 21: Pricing
Chapter 22: Budgetary Planning
BR
Chapter 23: Budgetary Control and Responsibility Accounting
Chapter 24: Standard Costs and Balanced Scorecard
Chapter 25: Planning for Capital Investments
Appendix A: Specimen Financial Statements: Apple Inc.
Appendix B: Specimen Financial Statements: PepsiCo, Inc.
AR
Appendix C: Specimen Financial Statements: The Coca-Cola Company
Appendix D: Specimen Financial Statements: Amazon.com, Inc.
Appendix E: Specimen Financial Statements: Wal-Mart Stores, Inc.
Appendix F: Specimen Financial Statements: Louis Vuitton
Appendix G: Time Value of Money
Appendix H: Reporting and Analyzing Investments
Y
Appendix I: Payroll Accounting
Appendix J: Subsidiary Ledgers and Special Journals
Appendix K: Other Significant Liabilities
,Name: Class: Date:
Chapter 1
1. Which of the following topics would be studied in macroeconomics?
a. changes in airline travelers’ vacation plans due to changes in the prices of airline tickets
b. the effects of a tax reduction on the profits of Home Depot
c. recessions
d. unemployment among workers displaced as more firms move to cloud-based applications
ANSWER: c
LU
2. The basic concern of microeconomics is to:
a. ensure that the government pursues the public good during pandemics.
b. make sure small businesses thrive.
c. study the choices people make, given unlimited wants.
d. determine how unlimited resources can best be used to satisfy limited wants.
XE
ANSWER: c
3. How people choose among the alternatives available to them is:
a. not part of the study of economics.
b. impossible to describe.
LI
c. studied in microeconomics.
d. unimportant to the study of microeconomics.
ANSWER: c
BR
4. Which of the following is a microeconomic topic?
a. reasons why a consumer buys more cheese
b. reasons why inflation is rising
c. what the government will do to address unemployment
d. the effect of the budget deficit on the rate of interest
AR
ANSWER: a
5. Scarcity occurs in economics because:
a. we often do not have sufficient resources to achieve our objectives.
b. the wants of individual consumers are limited.
Y
c. there are poor people even in rich countries.
d. taxes keep prices higher than they would otherwise be.
ANSWER: a
6. If resources are scarce:
a. they are insufficient to provide enough goods and services to satisfy all human material wants and
needs.
b. there are not enough of them for firms to produce goods and services.
c. they are probably overvalued by consumers.
, ...
Name: Class: Date:
Chapter 1
d. their supply is unlimited.
ANSWER: a
7. A central and fundamental theme in economics is that:
a. for me to have something, someone else must be willing to give it up.
b. the United States is a rich country, but we are simply not aware of it.
LU
c. there are not enough resources available to satisfy all the ways a society wants to use them.
d. we can build as much as we want, since resources are unlimited.
ANSWER: c
8. In a society with a market economy, decisions made by society as a whole emerge from many individual
XE
choices. Which of the following exemplifies this phenomenon?
a. The volume of work performed by the American workforce.
b. The market demand for oranges.
c. Whether a firm is profitable enough to remain in business.
d. All of these exemplify this phenomenon.
LI
ANSWER: d
9. , that is, decisions by an individual about what to do and what not to do, is the basis for
economics.
BR
a. Opportunity cost
b. Utility
c. Marginal choice
d. Individual choice
ANSWER: d
AR
10. forces us to make choices.
a. Opportunity cost
b. Marginal decision making
c. Scarcity
Y
d. Market failure
ANSWER: c
11. In our interactions with other consumers (or individuals), we are forced to make choices because of:
a. utility and demand exploitation.
b. efficiency considerations.
c. scarcity.
d. decisions made at the margin.
ANSWER: c
for
Essentials of Economics, 6th
LU
Edition
XE
By Paul Krugman; Robin
Wells
LI
BR
(All Chapters 1-20, 100%
AR
Original Verified, A+ Grade)
Y
, Table of Content
Chapter 1: Accounting in Action
Chapter 2: The Recording Process
Chapter 3: Adjusting the Accounts
Chapter 4: Completing the Accounting Cycle
Chapter 5: Accounting for Merchandising Operations
Chapter 6: Inventories
Chapter 7: Fraud, Internal Control, and Cash
Chapter 8: Accounting for Receivables
Chapter 9: Plant Assets, Natural Resources, and Intangible Assets
Chapter 10: Liabilities
LU
Chapter 11: Corporations: Organizations, Stock Transactions, and Stockholders’ Equity
Chapter 12: Statement of Cash Flows
Chapter 13: Financial Analysis: The Big Picture
Chapter 14: Managerial Accounting
Chapter 15: Job Order Costing
XE
Chapter 15A: Job Order Costing: A Non-Debit and Credit Approach
Chapter 16: Process Costing
Chapter 16A: Process Costing: Non-Debit and Credit Approach
Chapter 17: Activity-Based Costing
Chapter 18: Cost-Volume-Profit
LI
Chapter 19: Cost-Volume-Profit Analysis: Additional Issues
Chapter 20: Incremental Analysis
Chapter 21: Pricing
Chapter 22: Budgetary Planning
BR
Chapter 23: Budgetary Control and Responsibility Accounting
Chapter 24: Standard Costs and Balanced Scorecard
Chapter 25: Planning for Capital Investments
Appendix A: Specimen Financial Statements: Apple Inc.
Appendix B: Specimen Financial Statements: PepsiCo, Inc.
AR
Appendix C: Specimen Financial Statements: The Coca-Cola Company
Appendix D: Specimen Financial Statements: Amazon.com, Inc.
Appendix E: Specimen Financial Statements: Wal-Mart Stores, Inc.
Appendix F: Specimen Financial Statements: Louis Vuitton
Appendix G: Time Value of Money
Appendix H: Reporting and Analyzing Investments
Y
Appendix I: Payroll Accounting
Appendix J: Subsidiary Ledgers and Special Journals
Appendix K: Other Significant Liabilities
,Name: Class: Date:
Chapter 1
1. Which of the following topics would be studied in macroeconomics?
a. changes in airline travelers’ vacation plans due to changes in the prices of airline tickets
b. the effects of a tax reduction on the profits of Home Depot
c. recessions
d. unemployment among workers displaced as more firms move to cloud-based applications
ANSWER: c
LU
2. The basic concern of microeconomics is to:
a. ensure that the government pursues the public good during pandemics.
b. make sure small businesses thrive.
c. study the choices people make, given unlimited wants.
d. determine how unlimited resources can best be used to satisfy limited wants.
XE
ANSWER: c
3. How people choose among the alternatives available to them is:
a. not part of the study of economics.
b. impossible to describe.
LI
c. studied in microeconomics.
d. unimportant to the study of microeconomics.
ANSWER: c
BR
4. Which of the following is a microeconomic topic?
a. reasons why a consumer buys more cheese
b. reasons why inflation is rising
c. what the government will do to address unemployment
d. the effect of the budget deficit on the rate of interest
AR
ANSWER: a
5. Scarcity occurs in economics because:
a. we often do not have sufficient resources to achieve our objectives.
b. the wants of individual consumers are limited.
Y
c. there are poor people even in rich countries.
d. taxes keep prices higher than they would otherwise be.
ANSWER: a
6. If resources are scarce:
a. they are insufficient to provide enough goods and services to satisfy all human material wants and
needs.
b. there are not enough of them for firms to produce goods and services.
c. they are probably overvalued by consumers.
, ...
Name: Class: Date:
Chapter 1
d. their supply is unlimited.
ANSWER: a
7. A central and fundamental theme in economics is that:
a. for me to have something, someone else must be willing to give it up.
b. the United States is a rich country, but we are simply not aware of it.
LU
c. there are not enough resources available to satisfy all the ways a society wants to use them.
d. we can build as much as we want, since resources are unlimited.
ANSWER: c
8. In a society with a market economy, decisions made by society as a whole emerge from many individual
XE
choices. Which of the following exemplifies this phenomenon?
a. The volume of work performed by the American workforce.
b. The market demand for oranges.
c. Whether a firm is profitable enough to remain in business.
d. All of these exemplify this phenomenon.
LI
ANSWER: d
9. , that is, decisions by an individual about what to do and what not to do, is the basis for
economics.
BR
a. Opportunity cost
b. Utility
c. Marginal choice
d. Individual choice
ANSWER: d
AR
10. forces us to make choices.
a. Opportunity cost
b. Marginal decision making
c. Scarcity
Y
d. Market failure
ANSWER: c
11. In our interactions with other consumers (or individuals), we are forced to make choices because of:
a. utility and demand exploitation.
b. efficiency considerations.
c. scarcity.
d. decisions made at the margin.
ANSWER: c
