0 Marks) cavon wich of the ftlowing sand which F ( ! a m to the size of the economic Pie how the pic is divided, and efficiency refers the Beal potentially improve market outcomes if market inequalities oF preeree ; T eer ram, factors of production include land, labor, ed expat F aqcular-flow diag? . ie ¢¢ that production possibilities frontiers rarely have a bowed aia i Fron eet demand curve shows how the total quantity demanded of a good varies iG yyers Vanes, all the other factors that affect how much consumers want nota change in ay refers © 11 cause a change in quantity supplied, but : + Seply and demand together determine the price and quantity of a good sold in a market. T The demand for gasoline will regpond more to a change in price over aperiod of five weeks than over a period of five years. : The midpoint method. is used to calculate clasticity between two points because It gives the same answer regardless of the direction of the change. 10. The cross-price elasticity of garlic salt and onion salt is -2, which indicates that garlic salt and onion salt are substitutes. 11, Accountants keep track of the money that flows into and out of aes 12. The shape of the marginal cost curve tells a producer something about the marginal product of ber workers. 13, Variable costs equal fixed costs when nothing is produced. F 14 In making a short-run profit-maximizing production decision, the firm must consider both fixed and variable cost. 15. Firms operating in perfectly =_" markets produce an output level where marginal revenue equals marginal cost. 16 Inthe long nan, a firm should exit the industry ifits total costs exceed its total revenues "Y 17. [fconsumption is $1800, GDP is $4300, government purchases are $1000, imports are $700, and investment is $1200, then exports are $300, ¥ 18. Economists use the term inflation to describe a production level is rising. 19. Ifthe GDP in 2 2 keacoe ane fas 1660 and the GDP deflator in 2007 was 180, then the inflation 20. Nominal GDP uses constant base-year prices to place a value o * goods and services, while real GDP uses current prices to ee Seay production of goods and services. F iinet naa tion in which the economy's overall Scanned with CamScannerio 2 Seen an economy pret two prods bod aed machines. This eonomy always operates on ‘podacton posses frontier. Last year, it produced $0 units of food and 0 machines. ‘This year, itis redbenng $5 units of food and 33 machines. Which of the following events could nat explain the increase in. ES), ission in wamnplopaigs sn increase in availabe labor sn improvement in technology JR orice cond pin ern in ouput ‘nish of the following is a microeconomics question? G tow acange i god's rice tects ady’s purchasing decison’ 1S, Why do some countries grow faster than otbers?” President ake action wo ecice global warming? tempt to inthuence the imerest rate lover ination? 4) Which ofthe following wonts and phrases best 1 minima waste maximum benefit sameness efficiency. D. Should the government ‘capsares the notion of eytaligy’? 5) A firm has a fixed cost of $500 in its oul costs are $4,500, The m cont of producing 101 units? a $653 is fit year of operation. When the fim produces 100 harnal com of produciog the 101s unit of cutpat is $300. What Scanned with CamScannerich ofthe following will definitely occur wh 5) Whee 8 Man increase a soppy? x An increase in equilibrium price Oy decrease in equilibrium price (C. An increase in equilibrium quantity D. Adccrease in equilibrium quantity en there is a simultaneous increase in demand 9) Aperfetly inelastic demand implies that buyers “4. decrease ‘hele purchases when the price Tises, Purchase the same amount a5 before when the price rises or falls increase thir purchases only slightly when the price falls, & respond substantially to an increase io Price, LOVFor which of the otlowing goods would demand be most inelastic? Q shocotate 8. Godiva chocolate § Hershey’s chocolate 4. All hree would have the same elasticity of g “mand since they are all related, I) Acompettive matket is one in which & there is only one selet, bur there are many by Verde b there are many sellers ang cach sel Set the price of his product & sec DL bey compe hg Qu fore i SSPDly schedule and g Supply curve j & a supply Schedule incomorates demand and 3 5 boa ‘Supply schedule. incomorites Profit anda Supply curve does not, S. a supply Schedule can is, by Supply curve cannot shit, 9 & Suply Schedule is g Bble and a ‘Supply curve is drawn ona graph, '3) Suppose that demand for a pod g ; we ; ‘Would happenin the marke fob pange SS 3M tthe sometime, 3. Equilibrium price ambiguous, ® Enitiron Ambiguous, ‘Crease, & Eaubrsm gang smbigucag, 9 sou decrease, but the & Equi Shea oi Price would, Scanned with CamScannerion (3): Choose the correct answer for each of the following: goes (10 Marks} wich of the Gllowing is comect if a the end of Crystal Imports’ first year of operations, asses are gveno and owners’ equity is $7: 000 ; ‘The owner must have invested $720,000 wo stam the business. + rye business must be operating pr ftably. 9 bites are $80,000. abilities are $1,520,000. total liabilities of Hogan's Company on the bal lance sheet are $270,000; this amount is equal to three- nets equity? jurhsof he tal asses, What is the amount of 9 4. 5202,500. 9400. £52400 cash and a $31,000 nore payable are given in exchange for some office machines to be used in a otal assets are increased. B Total lisbiliies are decreased, €.Toval assets are decreased. D-Theouners' equity is increased, 4 Atunsicton caused a $60,000 ineease in both assets and total labiltie. This transaction hich of the following? A Purchase of office equipment for $60,000 cash, ‘chase of office equipment for $120,000, paying $60,000 cash and issuing a note payable for the Buance, C. Repayment of a $60,000 bank loan, © lavestment of $60,000 cash in the business by the owner, could have been © of $40,000 and signing a note payable for the balance 9£$130,000. The journal entry to; m in the accounting records of the purchaser includes: ‘A. A credit to Land for $40,000, BLA debit to Cash for $40,000, CD debit to Land for $170,000, ‘A debit to Note Payable for $130,009, 6. Which of the followin co ¥ rors would be disclosed (Total Debit # Total Credit lance? A. The collection of an secur ows el flee " ssvable was reeorded by a debit o the Land account rather than to the Cash B. The collection of an account pee: 9 i 2 ets “SsaBle for $219 was recorded by 8 $291 debit to Cash and a $291 ereditto 5 “The collection of a $345 Fecord this transaction ) by preparation of a trial Scr0Unt mceivable was tL Pe collection of a $33 vable was not recorded at all. Ponts Receiwabis *unt receivable Was recorded by a §32: Scanned with CamScanner+ naster Equipment bas a$17:400 lability to Arrow Paint Co, When Master Equipment makes a partial y wment of $7,600 on this liability, which of following is true about the journal entry made by aaa ond this transection? 2 The Cash Paid Out account is debited $7,600. Mie liability account Accounts Payable is credited $9,800. pre Cash account is debited $7,600. Dr The Accounts Payable account is debited $7,600. g. Arthe end of the current year, the owners’ equity in Barclay Bakery is $246,000. During the year, the assets ofthe business had increased by $120,000 and the liabilities had increased by $72,000. Owners’ equity at the hesinning of the year must have been: Q)5198,000. B. $174,000. C. $284,000. D. $438,000. For the following case: answer questions 9 and 10, Astoria Co. had the followi during the month of Augu Cash received from bank loans was $20,000. «Dividends of $9,500 were paid to stockholders in cash Revenues eamed and received in cash amounted to $33,$00 «Expenses incurred and paid were $26,000 9, What amount of,net income will be reported on an income statement for the month of August? $20,000, Gp. - w Ge-e D. $33,500. 10, Atthe beginning of August, 2010, owners’ equity in Astoria was $160,000. Given the transactions of August, what will owners’ equity be at the end of the month’? A. $167,500. mee = OEsC+ RE $158,000. — —_ = R.E=NtL.- Div. 4 During the month of August, the Boyce Company had the following transactions: For the following case: answer Questions 1 Revenues of $120,000 were eg am Bank loans of $18,000 Rela ens 2 Equipment of $40,000 was ; «Expenses of $73,600 were. a ased with cash. ‘Stockholders purchased additional shares for $44,000 cash. Scanned with CamScannerwa statement of cash flows for August, would report net eash flows frd 1 $26,000. $3240 540,000. “46 400, e Rey -£x ‘ 1 Astatement of cash flows for August, would report net cash flows from financing activities of: 26,000. 3.532.400. $40,000. 0.$46,400. {operating activities § 13,A statement of cash flows for August, would report net cash flows from investing activities of: 4.$26,000. $32,400. ae Oia. Eq. 14. A statement of cash flows for August, would report an increase in cash of: $26,000. 3230. T. $40,000. D. $46,400, 18, Black Systems sold and delivered modems to White Computers for $330,000 to be paid by White in three ‘equal installments over the next three months. The journal entry made by Black Systems to record this transaction. will include: QA edit to Accounts Receivable for $330,000. B. A credit to Accounts Receivable for $330,000. C. A debit to Accounts Receivable for $110,000 D. A debit to Cash Paid for $330,000, Se, ANSWeT questi Wilson Tracking, Inc. reports these account balances at January 1, 2012 (shown in alphabetical order): $220,000 [Capea $650,000 Land $400,000 Accounts $200,000 Cash $160,000 Notes Payable [$320,000 Receivable |__| 2 $480,000 Equipment 33200,000) Retained $140,000 en EE al sary 5, Wilson Truck o a On January $, Witson Trucking cotfee ecounts receivable, on its ace On ane 2! ps 311,000 on eel $175.00 ofa sis ee ble, paid $150,000 on its accounts atrial balance prepa A 160.000, PPATEL for Wilson Trucking on January 1,2012 the total ofthe credit column is 8 $1,560,000, $1,620,000, D. $3,120,000, Scanned with CamScannersjal balance prepared for Wilson Tricking on January § ssh balance prepared on January 5, 2012, the total o jp onJamaary 5. 2012, total Liabilities are: 2012, total assets are: D.$1,574,000. Question 4: ain +2012, the total ofthe deb it column is: :dcbit column is: 000. fhe credit column is: A)forexchof the following transactions, identify the effects as reflected in the accounting equation terms (Ascets, Lisbilities, Equity) as inerease of decrease or no change. [6 Marks] T Transaction Assets Liabilities | Fquity (1 Land was purchased for $50,000, a down payment of a | is 000 cash was made, & a note was signed for the 4 |= 2. Service were rendered to customers for cash tt! t (3. TA building was purchased for cash | = ! A |Paid the office secretary?s salary (wages expenses) Ceiling isa list of accounts end identification letters A through J for Shannon Management y A_| Shannon, Capital B | Interest Payable fH Marks] D_| Shannon, Dividends F ¢ | band G_| Notes Receivable H_| Accounts Payable Scanned with CamScanner 7pack but not to 1S ongisl _wodd to fall DAL” onses) Scanned with CamScanner