An import quota:

• A.regulates the quantity of imports.
• B.eliminates all imports.
• C.regulates the quality of imports.

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A decrease in the inventory turnover may mean:
I). more inventory is on hand and is not moving through manufacturing and being sold.
II). a change in the company's product mix.
III). the company is reducing its risk of inventory stock-outs.

• A.I and III.
• B.I only.
• C.I, II and III.

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Financial statements are an input into which step in the financial statement analysis framework?

• A.Collect data.
• B.Process data.
• C.Analyze/interpret the processed data.

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A price-taking firm CANNOT:

• A.produce where marginal costs exceed average costs in the short run.
• B.sustain economic losses in the long run.
• C.earn economic profits in the short run.

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A consumer purchases a new house for his own family to live in. The price is $600,000 and it will last for 60 years. Under the expenditure approach:

• A.Personal consumption expenditures will be added for $600,000 since the house is a personal, not business goods.
• B.Personal consumption expenditures will be added for $10,000 ($600,000 / 60 years) since the house is expected to last for 60 years.
• C.Gross private investment will be added for $600,000 since the house can be seen as an investment.

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