Why would an entrepreneur want to operate a mobile food truck instead of a restaurant?

• A.In the short-run restaurants make zero economic profit.
• B.A mobile food truck has lower fixed costs than a restaurant.
• C.A mobile food truck invites a wider variety of customers than a restaurant.
• D.In the long-run restaurants make zero economic profit.

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A company sold a piece of equipment to another party for $150,000. The equipment was originally purchased for $300,000. Depreciation of $200,000 had been recognized against the equipment. How would the accounting equation for the company be impacted upon the disposal of the equipment?

• A.Assets increased by $150,000 and owner's equity increased by $150,000.
• B.Assets increased by $50,000 and owner's equity increased by $50,000.
• C.Assets decreased by $100,000 and assets increased by $100,000.
• D.Assets decreased by $100,000 and owner's equity increased by $100,000.

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A stockbroker wishes to examine the relationship between merger failures and stock prices. For 30 days, data were collected for closing stock prices each day and the number of merger failures announced that day. After reviewing the data, the stockbroker believes that merger failures affect stock market prices for more than one day. Which of the following measures would help the stockbroker incorporate that effect into the regression model?

• A.Include dummy variables
• B.Include lagged variables
• C.Include other independent variables, such as the number of news reports on dividend released each day
• D.Introduce a variable that is collinear with number of news reports on merger failure

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Based on the histogram below, order the mean, median, and mode of the data from smallest to largest.

• A.Median, Mode, Mean
• B.Mode, Median, Mean
• C.Mode, Mean, Median
• D.Mean, Mode, Median

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Managers at a fast food chain that employs mostly minimum wage workers learn that a new law may increase the minimum wage in the United States by 25 percent. Assuming demand for labor is NOT perfectly elastic, how will this affect the market outcome?

• A.At any market price, fast food restaurants will be willing to supply less food.
• B.Demand for fast food will increase, offsetting the change in price due to decreased supply.
• C.Price and quantity of fast food will not change, but the fast food chain will capture more value.
• D.As more people will be willing to work for the higher wage, the fast food chain's output will increase.

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