ISBN 13: 978-1305280595

True / False 1. Once a firm has selected a price for its product, quantity is decided by consumers and their demand curves. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: Supply and demand NATIONAL […]

b. decreasing returns to scale. c. constant returns to scale. d. increasing costs per unit of output. ANSWER: a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: Costs of production NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Costs of […]

a. (a) b. (b) c. (c) d. (d) ANSWER: a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: Costs of production NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Costs of production TOPICS: Cost and Its Dependence on Output KEYWORDS: […]

Table 7-1 Workers Toys 1 5 2 12 3 22 4 30 5 35 75. In Table 7-1, the marginal physical product of labor after the addition of the fourth worker is a. 8. b. 7. c. 10. d. 5. […]

True / False 1. The short run is that period during which there are no fixed commitments. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: Costs of production NATIONAL STANDARDS: United States – BPROG: Analytic […]

TOPICS: Price Elasticity of Demand: Its Effect on Total Revenue and Total Expenditure KEYWORDS: BLOOM’S: Analysis 133. A recent study on enrollment at a liberal arts college concluded that demand elasticity is 0.91. The administration is considering a tuition increase […]

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: Supply and demand NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Supply and demand TOPICS: Price Elasticity of Demand: Its Effect on Total Revenue and Total […]

True / False 1. The market demand curve shows how the quantity demanded of a product, during a specified time period, changes as the price of that product changes. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING […]

a. D to C. b. B to D. c. C to B or A. d. D to A but not B. ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: Utility and consumer choic – DISC: Utility and consumer choice […]

KEYWORDS: BLOOM’S: Comprehension 134. A budget line is a straight line designed to show a. how income is related to hours worked. b. all combinations of two goods that can be purchased with a given income. c. the way a […]

TOPICS: Utility: A Tool to Analyze Purchase Decisions KEYWORDS: BLOOM’S: Comprehension 75. When the price of a commodity falls, we can expect a. total utility will fall. b. marginal utility of the last unit purchased will fall. c. marginal utility […]

True / False 1. Because the consumer’s budget is limited, purchase decisions among available goods must of necessity be interdependent. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: Utility and consumer choic – DISC: Utility […]

LEARNING OBJECTIVES: DISC: Supply and demand NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Supply and demand TOPICS: Battling The Invisible Hand: The Market Fights Back KEYWORDS: BLOOM’S: Comprehension 284. Tampering with the price mechanism a. can be efficient […]

TOPICS: Supply and Demand Equilibrium KEYWORDS: BLOOMS: Application 244. If the price of a good is below the equilibrium price, a. suppliers will find inventories building; they will cut output and raise prices. b. suppliers will find inventories being depleted. […]

POINTS: 1 DIFFICULTY: Difficult LEARNING OBJECTIVES: DISC: Supply and demand NATIONAL STANDARDS: United States – BPROG: Reflective Thinking – BPROG: Analysis ACCREDITING STANDARDS: Supply and demand TOPICS: Supply and Quantity Supplied KEYWORDS: BLOOMS: Application Figure 4-6 196. Grapes can be […]

a. supply curve shifted to the left. b. demand curve shifted to the right. c. demand curve shifted to the left. d. supply curve shifted to the right. ANSWER: b POINTS: 1 DIFFICULTY: Difficult LEARNING OBJECTIVES: DISC: Supply and demand […]

ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: The role of government NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: The role of government TOPICS: Battling The Invisible Hand: The Market Fights Back KEYWORDS: BLOOM’S: Comprehension 76. Price […]

1. Scarcity and choice are the basic problems of economics; the supply and demand mechanism is the basic investigative tool of economics. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: Supply and demand NATIONAL STANDARDS: […]

DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: Gains from trade, speciali – DISC: Gains from trade, specialization and trade NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: Gains from trade, specialization – Gains from trade, specialization and trade TOPICS: The Three […]

b. No, scarcity does not apply to governments. c. Yes, resources are limited even for the U.S. government. d. Yes, although the U.S. government can easily obtain more resources. e. Uncertain-economic theory has no answer to this question. ANSWER: c […]

DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: The study of economics, an – DISC: The study of economics, and definitions in economics NATIONAL STANDARDS: United States – BPROG: Reflective Thinking – BPROG: Analysis ACCREDITING STANDARDS: The study of economics, and defi – […]

1. If the budget deficit was eliminated, the federal government would have more money than it could spend. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: Scarcity, tradeoffs, and o – DISC: Scarcity, tradeoffs, and […]

KEYWORDS: BLOOM’S: Knowledge 71. If California were a separate economy, it would be the ____ largest economy on earth. a. second b. third c. fifth d. eighth ANSWER: d POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: DISC: Measuring the Economy NATIONAL […]

True / False 1. The United States is the largest national economy in the world. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: DISC: Measuring the Economy NATIONAL STANDARDS: United States – BPROG: Analytic ACCREDITING STANDARDS: […]

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website […]

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website […]

© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website […]

Which of the following shows the relationship between national income (GDP) and total spending? a. Demand schedule b. Consumption curve c. Expenditure schedule d. Balance schedule The price of coffee rose 50 percent and coffee sales fell 25 percent. Doughnut […]

The principal danger to Japan in 2001 when the yen was appreciating was that this would a. increase aggregate demand and make inflation worse. b. decrease aggregate demand and make the recession worse. c. decrease aggregate demand and make inflation […]

If a good has “snob appeal,” consumers may purchases less when the price falls. a. True b. False Net benefit is equal to total benefit minus marginal cost. a. True b. False Answer: False In the basic 45-degree line model, […]

Is GDP an accurate measure of a country’s well being? a. Yes, it is the best measure of national well being. b. Yes, provided we use real GDP and not nominal GDP. c. The answer is uncertain, depending on whether […]

An appreciation of the Japanese yen relative to the U.S. dollar will a. increase aggregate demand in the United States. b. increase aggregate supply in the United States. c. increase aggregate demand in Japan. d. decrease aggregate supply in Japan. […]

Which of the following is most likely to affect the supply of labor in any particular industry? a. the size of the available working population b. the nonmonetary attractiveness of the job c. the amount of ability and training necessary […]

Corporations have the disadvantage of (i) double taxation; (ii) unlimited liability. a. i and ii b. i not ii c. ii not i d. neither i nor ii Productivity increases, brought about by increased education and training, may shift the […]

The share of GDP taken by taxes is considerably higher in the United States than in other countries. a. True b. False In March 2015, many college students bet on the NCAA finals in dorm gambling pools. This is an […]

A change in the price level will cause a shift in the expenditure schedule. a. True b. False Which of the following could explain a fall over time in the price of the depletable resource aloe? a. The productivity of […]

Once the profit-maximizing output where MR = MC is determined, price is set by a. adding a standard markup percentage to marginal cost. b. the demand curve. c. making it equal to MR = MC. d. subtracting the marginal cost […]

Demand shifts due to changes in price. a. True b. False The accounting relationship between the budget deficit and the trade deficit may be expressed as ____. a. G + T = (S + I) + (X − IM) b. […]

Two economists from Ohio University estimated that the demand curve for kerosene in Indonesia was such that a 10 percent increase in the price reduced the quantity demanded by 2.2 percent and that a 10 percent increase in the price […]

In the short run, a firm has fixed costs but never any variable costs. a. True b. False If the production of a good generates a detrimental externality, then at that level of production of the good under perfect competition, […]

Average cost a. is always larger than marginal cost. b. declines for some range of output, hits a minimum, and then increases. c. is always smaller than marginal cost. d. is total cost/price of the product. One intention of deposit […]

National income minus personal taxes net of transfer payments equals disposable income. a. True b. False Governments of market-oriented economies never tamper with the price mechanism. a. True b. False Answer: False Graphs are valuable because they facilitate interpretation of […]

Collaborative research is especially important in high-technology sectors because a single firm might not have the resources to develop a significant innovation. a. True b. False The main international repercussion of either a fiscal expansion or monetary contraction is to […]

Looking at the record of concentration in the United States during the last century, one finds concentration has a. steadily increased. b. risen dramatically in the past 15 years. c. changed very little. d. fallen steadily except in wartime. Productivity […]

When will stabilization policy be most effective in combating inflation? a. when AS is flat b. when AS is very steep c. when AS has a moderately upward slope d. when AS has a moderately downward slope Self correcting mechanism […]

If wages or prices of other inputs change, the aggregate supply curve will shift to another position. a. True b. False Being a monopolist in the market a. guarantees a positive short-run profit. b. guarantees a positive long-run profit. c. […]

The demand curve for any input is the MP curve. a. True b. False The way in which a country benefits from trade is that it can a. obtain goods at lower opportunity cost than producing them itself. b. exploit […]

The production function shifts upward as the capital stock increases. a. True b. False A profit-maximizing monopolist a. is just as socially efficient as a perfectly competitive firm in allocating resources to production since she, too, seeks the largest return […]

The relative concept of poverty is based on how far behind average income a particular family gets. a. True b. False If the supply curve of a commodity is upward sloping, and the producing country begins to export more in […]

In the Keynesian causal chain, changes in GDP cause changes in the level of interest rates. a. True b. False Which of the following is concerned with the distribution part of resource allocation? a. An economy decides to produce equal […]